Palmerton Area School District’s board of directors passed a proposed final budget Wednesday night that calls for a 2.36-mill, or 4.1%, property tax increase in 2021-22.

The tax increase, if finalized next month, would be the largest the district could enact under Pennsylvania’s Act 1.

Directors unanimously voted to pass the proposed final budget, which opens the spending plan for public inspection and starts the clock ticking toward a final vote, which is currently scheduled for June 15.

“The tax increase could be changed to anywhere from zero to 4.1% before the final budget is adopted,” Business Manager Ryan Kish told the board Wednesday. “This just allows us to advertise the proposed final budget and get the ball rolling.”

Palmerton raised taxes 1.8% last year after two consecutive years of holding the line.

The district is proposing a $35.26 million budget and, as of a presentation on May 4, would still need to use $1.6 million in reserves to balance it.

A 4.1% increase would generate $695,000 in revenue and cost a homeowner with an average assessment an additional $104.

Major increases over last year’s budget include $837,000 in salaries and benefits, $170,000 in Public School Employees’ Retirement System contributions, $429,000 in medical benefits and $200,000 in charter school tuition.

The 2021-22 budget includes two new positions: a high school technology teacher and an elementary special education teacher.