With no changes from the 1.25 mill property tax increase proposed last month, Palmerton Area School District's board of directors put the finishing touches on its 2017-18 general operating budget Tuesday night.

By a 6-3 vote, the board adopted the $32.34 million spending plan, which will see a Palmerton homeowner with an average assessed property of $43,000 pay an extra $53.75 over the current year's tax bill.The budget approval also includes the usual $15 per capita tax, $5 of which goes to the municipality, earned income tax of 1 percent, realty transfer tax of 1 percent and local services tax of $5.Per the state's Act 1 index, the district was allowed to levy a 1.88 mill tax increase by law without seeking an exception from the state, but settled on 1.25 after discussion earlier this year.Even with the proposed increase, board members said, the district will still need around $2 million from the fund balance to even things out.A very small percentage of the district's budget is flexible with most of it being locked in costs such as salaries and benefits. As has the been case in recent years, the biggest cost driver for Palmerton's 2017-18 budget is the contribution to the Pennsylvania State Employees' Retirement System, up $276,613 from the 2016-17 budget.According to business manager Ryan Kish, salary contributions will increase by $204,708; health care benefits by $296,668; the district's debt service by $94,709.Other increases include all-day kindergarten supplies; adding volleyball ($15,000), music instruments ($8,000), tax collector bonding ($7,000) and additional electric to support air conditioning in district buildings ($67,000).The district will save $96,000 by eliminating a midday bus run due to the all-day kindergarten program and also save $33,000 on its textbook line item.Qualifying district taxpayers will receive relief of $203.14 from state gaming money after the board also adopted the homestead or farmstead exclusion Tuesday.Breakfast and lunch prices were also set Tuesday as mandated by the Healthy, Hunger-Free Kids Act of 2010.The prices include $1.15 for a student breakfast at the elementary schools, $1.25 for a student breakfast at the secondary schools, $2.10 for an adult breakfast, $2.45 for a lunch at the elementary schools, $2.55 for a lunch at the secondary schools, $3.50 for an adult lunch and $0.55 for milk.