Jim Thorpe school board members have officially adopted a 2022-23 budget with no tax increase.

Board members voted 9-0 Wednesday night to pass a $50,880,849 budget. The real estate tax rate will remain at 45.52 mills, which has been the tax rate since 2013.

In order to balance the budget with no tax increase, the district will use $5.5 million from its fund balance. At the end of the year, the district will have $2.1 million remaining in the account.

Business Manager Ken Marx Jr. still recommended that the board raise taxes to stop it from continuing to use money in its fund balance. The fund balance was $17 million in 2017.

Increased costs for salaries, health care, pensions and cybercharter tuition have reduced it since then.

“The district needs to close the spending gap by increasing its revenues while controlling spending,” Marx wrote.

The district’s auditor offered the same advice in March, when he presented the 2020-21 audit. It showed the district spent $3.5 million less than it took in that year.

At the time, school board member Paul Montemuro said, “We can only pull from this fund balance for 2-3 years until we’re flat broke.” In the months leading up to passing the budget, the board and administration cut $2 million from the budget.

In order to help close the deficit, the district plans to resume a controversial practice - increasing tax assessments for new homebuyers based on the amount they paid for their homes.

It will affect homes sold after July 1.

Realtor Ron Dunbar criticized board members for the idea. He said he has already seen potential buyers back out of home sales because they learned that their taxes would go up. Dunbar said it would have repercussions that would ultimately hurt the tax base.

Board President Scott Pompa said that Jim Thorpe isn’t the only district in the county that challenges assessments.