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East Penn SD trims proposed tax increase to 3.9% and restores capital reserve; board approves multiple business items
Summary
Administrators presented revisions to the 2026–27 general-fund budget and long-range capital plan, including a reduction of the proposed real-estate tax increase from 4.1% to 3.9%, shifts of grant revenue into the current fiscal year and a $872,000 transfer into a technology stabilization fund. The board approved the budget revisions and a slate of business, personnel and legislative items, mostly by unanimous vote.
Administrators presented revised budget documents and a long-range fiscal plan to the East Penn School District Board of Directors on May 11, describing a set of midyear adjustments and near-term recommendations as the district moves toward final budget adoption in June.
Mr. Sallall, the administration’s business official, summarized changes incorporated since the April 27 meeting: local-revenue reductions of about $118,000 (including roughly $80,000 tied to property-tax rebate activity and about $40,000 in small grants and building receipts); an increase in state revenues of approximately $232,000 (including an estimated $119,000 shift related to a school-safety and security grant and about $130,000 tied to the Commonwealth student-teacher stipend program); and an approximately $500,000 reduction in district-wide instructional services expenditures primarily associated with technology and security grant timing. The presentation also noted an approximate $872,000 transfer into a newly formed technology stabilization fund seeded this fiscal year.
For the 2026–27 proposed budget, administration reported reducing the originally proposed real-estate tax increase from 4.1% to 3.9%, lowering projected revenues by an estimated $252,000 but partially offset by about $115,000 in additional assessment growth; administration said the practical effect for the average assessed home (~$216,000) is roughly a $10 difference per year between the two rates (4.1% ≈ $194 for the year, 3.9% ≈ $184 for the year).
Board members asked clarifying questions about the staffing adjustments built into the revisions. Administration clarified that the two 'professional staff' positions and two 'custodial and maintenance' positions referenced were being removed through attrition (vacancies occurring at year-end) rather than active layoffs. The administration also noted it had received updated assessment reports from Lehigh County that would add roughly $250,000 in real-estate tax revenue to be reflected in the final June budget; it recommended using that additional revenue to restore a portion of the capital-reserve transfer (restoration of about $455,000 was cited) and maintain an approximate 5% budgetary reserve.
Following discussion, the board handled a series of motions and roll-call votes (most recorded as 9 ayes) to approve routine and substantive items on the agenda: approval of the April 27 minutes; a corrected stipend for a co-curricular appointment (Stephen Whirley, cross-country head coach, $3,060); grouped business operations items; approval of Title II and Title III grant transfer items with Title I to return at a later meeting after a clerical correction; authorization to participate in Commonwealth cooperative purchasing programs; designation of depositories; approval of contracts and agreements; approval of district insurance policies for 2026–27; adoption of a real-estate tax-exoneration request resolution; appointments (including PSBA delegates and Lehigh Tax Collection Committee delegates); appointment of the treasurer; and approval of the LCTI 2026–27 budget. The board acknowledged an executive session earlier in the evening on personnel and district matters and adjourned the meeting.
The administration will present a final budget for board adoption at the June 8 meeting, incorporating the updated assessment figures and any additional refinements.
Votes at a glance: approval of April 27 minutes (9 ayes); personnel correction for cross-country coach stipend (9 ayes); approval of business-operations items including Title II/III transfers (Title I to return) (9 ayes); approval of contracts and agreements (9 ayes); facility-use/donations (9 ayes); designation of depositories (9 ayes); cooperative purchasing participation (9 ayes); delegate appointments (9 ayes); approval of 2026–27 district insurance policies (9 ayes); adoption of real-estate tax-exoneration resolution (9 ayes); adjudication approval (9 ayes); approval of curriculum conference additions (9 ayes); appointment of treasurer (9 ayes); approval of LCTI budget (9 ayes).
