Jim Thorpe School Board members have rejected a proposed budget that would raise taxes to close a $5.3 million deficit.

But board members said despite cost-cutting efforts, a tax increase is on the table.

“I believe that’s where we’re headed,” said board President Scott Pompa.

Board members voted 5-3 Wednesday night against a 2022-23 proposed budget that would raise taxes by 1.95 mills, or 4%. Jerry Strubinger, Glenn Confer and Dennis McGinley were in favor.

The budget included over $2 million in cuts from the 2021-22 school year. But with increases in wages, health care costs and cybercharter tuition, expenses are $50,755,851 - basically at the same level as last year.

With the tax increase, estimated revenue would be $46,654,719.

The board reduced costs for transportation, facilities, debt service, and by not replacing 10 teacher aides who left the district.

They also reduced the budget for services from the Carbon Lehigh Intermediate Unit. At Wednesday’s meeting, the board voted to have the district take over the high school life skills class, and contract the Penn-Kidder emotional support classroom to Behavioral Health Associates.

“I believe as a board we’ve really done some due diligence, to at least try and make some cuts,” Pompa said.

The tax increase would generate an additional $1.2 million for the district. The school board hasn’t raised taxes since 2014.

Over that time, expenses have increased from about $33 million per year to $45 million per year.

The budget deficit has been growing in recent years. The district had a $17 million fund balance in 2017. It’s estimated to finish the 2021-22 school year with $7 million. The proposed budget that the board rejected on Wednesday would have left the district with a projected fund balance of $3.6 million at the end of the 2022-23 school year.

Finance committee chair Cindy Lesisko-Henning said that the current board is paying for large raises and other expenses approved by past boards.

“We’re stuck holding the bag for it,” she said.

The board will hold a special meeting next Wednesday, following a meeting of the finance committee. Lesisko-Henning said they will continue to look at ways to cut the budget.

“We want to get it as close to balanced as we can,” she said.