The Tamaqua Area School board has adopted a preliminary budget with a 4.8% tax increase. School district officials say the tax increase is a last resort if they can’t cut a $3 million budget deficit before the June 30 deadline for school budgets.

“If we do a tax increase it’s absolutely the only way out,” said board President Larry Witting.

Board members voted Tuesday night to approve the preliminary budget with $39,957,589 in expenses.

The property tax rate would increase by 1.92 mills to 41.77 mills. The last time the district raised taxes was before the 2020-21 school year.

The tax increase would help the district avoid using all of its general fund balance to cover the $3 million shortfall and would leave the district with $1.3 million in the bank.

Expenses have increased by $2.7 million since 2021-22, or 7.67% driven, coming mostly from personnel costs.

Line items for salaries and benefits have increased by roughly $1.3 million combined.

Charter school expenses have increased by about $300,000.

The district’s contribution to PSERS, the state employee pension fund, increased by $273,309 over the previous year, for a total of $4.7 million, though the state reimburses some of that cost.

Wittig said that since the 2008 financial crisis, the contribution rate which PSERS requires districts to pay has been growing at a pace which is unsustainable for districts. In 2009, it was 4.76 percent of total payroll. This year it is 35.26.

“It’s crippling,” he said.

At budget workshops, the board discussed a proposed higher rate for substitute teachers and five additional positions, including a social worker, special education teachers, and an English as a Second Language teacher.

Superintendent Ray Kinder Jr. said previously that the district’s student population has increased over the past few years, and is estimated at just over 2,200. Kinder said many of the new students need ESL courses and special education instruction.

The school board can make changes to the budget up until final adoption, which can take place any time before June 30. The board and its finance committee both have scheduled meetings in June.

“We have a lot of homework to do on the budget itself,” Wittig said.