Any way you slice it, school districts across the state are likely facing increased costs and reduced revenues associated with the COVID-19 pandemic.

In response, Palmerton Area School District’s board approved a 1-mill property tax increase Tuesday night as part of a $34.03 million budget for the 2020-21 fiscal year.

The 8-1 vote came after lengthy discussion centered on what the upcoming school year could look like, particularly from a financial point of view.

Tammy Recker cast the lone dissenting vote, noting that a lot of homeowners are still struggling and a tax increase would not be in their best interest, particularly with so many unanswered questions as to the format in which school will take place this fall.

“I’m most concerned that many of the taxpayers this money is coming from are not working and are struggling to put food on the table for their family,” Recker said. “If we change how school looks in the fall, what does that do to parents? Some of them may not be able to go to work because they have to stay home with their children. I can’t possibly go along with this at this point and time.”

Local revenue is expected to be hit hard in the wake of the COVID-19 pandemic to the tune of between $784,000 and $1.2 million, according to current state projections.

Outside estimates also suggest districts could be looking at $1 million or more in additional expenses for costs related to students returning to school.

Board President Kathy Fallow cited the struggles neighboring Lehighton Area School District is going through, having exhausted its fund balance and not raised taxes for a number of years.

“I support a modest tax increase so we don’t get in a similar situation,” Fallow said. “I just don’t see any other option right now.”

Palmerton’s deficit, which will be absorbed by the fund balance, stands at $2.8 million with the tax increase.

The proposed tax increase will generate an additional $293,000 in property tax revenue to the district, or an increase of $44 over last year’s bill for the average taxpayer.

Although he voted for the tax increase, Director Earl Paules said just as much money could be generated by not returning students to the classroom in the fall.

“We can save almost as much in a month if we don’t go back to school as we can generate raising taxes by a mill. I think it just makes sense money wise not to open up the school.”

Paules later said he’d be in favor of students returning to the classroom if the district could be absolved of all liability.

“There is always a liability, even in nonpandemic times,” Dan Heaney, Palmerton’s director of curriculum and technology, said. ”That is just the business we operate. You minimize the liability to the extent you can.”

If fall sports were canceled, the district would be projected to save $175,000.

The district spends $90,000 to $95,000 per month on student transportation. Some districts are looking at only providing mandated transportation, which would be for special education students and charter school students. The district could look at furloughing support staff if the 2020-21 school year was online only, but it would be responsible for 100 percent of the awarded unemployment benefits.

Other savings could include around $2,800 per month in a security staff reduction and over $1,000 per month in energy costs.

“Even if we do not go back to a classroom setting, there is money we’re going to be spending,” Fallow said. “We talked about providing a laptop for each student and maybe helping out with broadband connections. There are going to be additional expenses any way you look at it.”

Director Kate Baumgardt also cautioned at strictly thinking about the pocketbook when considering whether to return students to a traditional school setting in the fall.

“I’d be very cautious in thinking that education is the same online as it is in person,” said Baumgardt, who teaches at Carbon Career & Technical Institute. “There is no way to replicate online what a teacher can do in the classroom. I’d be hesitant to say we’re not going to open up the school just because of the money.”