Lehighton Area School Board on Monday approved a 2025-26 budget that lowers property taxes by 1 mill, despite a failed attempt earlier in the meeting to pass a version of the budget that kept tax rates flat.

The board voted 5-3 in favor of the one-mill tax decrease after the no-increase version failed by the same margin. Board members Duane Dellecker, Sean Gleaves, Joy Beers, Jeremy Glaush and April Walker supported the 1-mill decrease. Voting against it were Barbara Bowes, Kerry Sittler and Heather Neff. Richard Beltz was absent.

Both budgets proposed $50.1 million in expenditures.

The version with a tax cut projects revenues of $49.7 million and an ending fund balance of $14 million. The flat-tax proposal would have kept revenues at $50.1 million and resulted in a slightly higher predicted ending fund balance of $14.35 million.

According to district documents, the estimated beginning fund balance for the 2025-26 fiscal year is $14.36 million.

Joy Beers, who voted in favor of the tax cut, questioned the need to maintain such a large fund balance.

“I believe the fund balance is going to increase again this year and next year,” Beers said. “If I’m being authentic with myself, I believe we are overtaxing the residents.

“We have been told in the past that we were going to have a deficit, but instead the fund balance increased.”

Beers pointed out that last year the district approved a budget with a projected $4 million deficit and no tax increase, but the fund balance still grew.

“This year, the 1-mill decrease budget has only a $400,000 projected deficit,” she said.

Fellow board member Dellecker echoed those concerns.

“We are, on average, 6.8% off on our projections versus our actuals every year,” he said. “That is the bottom line. We’ve got way too much money in the bank as far as I’m concerned. This is taxpayer money.”

Business Manager Matt Lentz acknowledged that timing issues could impact actual 2024-25 numbers.

“When you’re paying your teachers over the summer, that goes back to the prior budget year,” he said. “For health insurance purposes, there could be a delayed claim that is still getting kicked around and hasn’t actually hit yet. That could be for any amount.”

Not all board members supported the tax decrease.

“I think there are too many unknown variables,” Kerry Sittler said. “I think we’re going to get hit with costs we are not predicting. I think we should listen to our business manager that we spend money on.”

Barbara Bowes warned against making a decision that could affect the district’s financial rating.

“We’re going to take our chance with our credit rating, just to give people back $42.15,” Bowes said, referencing the estimated average savings per taxpayer under the one-mill reduction.

Bowes also noted that the district had to eliminate transportation services in 2020-21.

“We need to use this fund balance wisely,” she said. “The ESSER federal money is gone and I think when we’re another year past that, we’ll have a better idea where we are. You have to remember, you’re going to be negotiating two contracts in the next couple of years as well.”

Board member Heather Neff said her priority is student achievement.

“I’m not in favor of reducing the taxes,” she said. “I think we should all focus on the success of our students and providing the best educational opportunity we can and focus on bringing our students back from charter school. We should invest more in the positions and opportunities we have taken from our students in the past.”

The adopted budget projects $18.27 million in real estate tax revenue based on a millage rate of 51.8600, down from 52.7664 the prior year.

One resident, Walter Zlomsowitch, expressed frustration over the change in votes between meetings.

“I’m very disappointed that the board agreed to one budget at the last meeting and then Joy Beers, behind the scenes, convinced enough people to switch a vote to give money back and possibly put us in financial trouble later on,” he said. “I find that very upsetting.”

Despite the debate, board members in favor of the tax cut emphasized their confidence in the district’s financial position and leadership.

“Our business manager is forward thinking and our board is forward thinking,” said board member Jeremy Glaush. “We’re looking at going for more competitive grants. We need to make sure we focus on those kinds of things that can bring us more savings.”

Lehighton also on Monday approved a transfer of $2.8 million from the general fund to the capital reserve account.