Lehighton Area School District is proposing a final budget for the 2025-26 school year, totaling $50.1 million in both revenue and expenditures while maintaining the current real estate tax rate of 52.7664 mills.

Budget talks Monday night centered on discussions over budget accuracy and potential tax reductions.

Director Duane Dellecker presented his own analysis showing significant gaps between the district’s budgeted revenue versus expenditures when compared to audited figures over the past five years.

“In the latest audit, we’re showing that the difference between revenue and expenditures for our budget was $2.2 million, and that was to the negative,” Dellecker said. “Meanwhile our audit showed we were $2.3 million in the black. That’s $4.5 million off that we are on our numbers.”

Fellow board member Barbara Bowes pointed to the complexities of budget projections, noting, “the projection is a guess” and highlighting timing issues with state funding.

“You pass a budget in June but you don’t get the audited numbers until 18 months later,” she said.

The district’s revenue comes from three primary sources: local taxes ($25.5 million), state funding ($23.8 million), and federal funding ($843,000). The largest single revenue stream is current real estate taxes at $18.6 million, followed by state basic education funding at $11.5 million.

Instructional costs represent the largest expenditure category at $32.3 million, accounting for 64% of the total budget. This includes $20.4 million for regular elementary and secondary programs and $9.6 million for special education services.

Support services account for $12.9 million, with the largest components being operation and maintenance of facilities ($3.7 million), administration ($2.3 million), and student transportation ($1.8 million).

One notable aspect of the budget is the district’s substantial fund balance. The estimated ending unassigned fund balance of $9.38 million represents 18.72% of total budgeted expenditures, significantly exceeding the state’s recommended limit of 8% for districts with budgets over $19 million.

The total projected ending fund balance after 2025-26 is pegged at $14.35 million.

The growing fund balance, Dellecker said, led him to recommend a one or two mill property tax decrease.

“I’m saying that we’re collecting too much in taxes, and we should be giving a tax reduction to our residents,” he said. “I’d love to see a two mill tax decrease, but I’d also like to see one mill put into a facilities maintenance plan.”

Other board members expressed caution over reducing the tax millage.

“I would love to lower taxes for everybody,” director Jeremy Glaush said, “but I think we need to see what a couple of years without the federal (Elementary and Secondary School Emergency Relief) funding does. It makes sense to give it a year to see what happens.”

The board also discussed upcoming capital needs, including turf and track replacement, middle school repairs, and a high school roof replacement, all within the next 20 years.

“Duane, I’m with you on a tax decrease, but we’re in the minority,” Board President Joy Beers said. “The board majority wishes to hold the taxes level.”

Dellecker said when the budget comes up for a final vote in two weeks, he will not be saying yes.

“I won’t vote for a budget when we’re sitting on this kind of cash,” he said.