LASD considers referendums on some construction projects
Lehighton Area School District directors are weighing whether to adopt a local policy requiring voter referendums on certain construction projects — even when state law does not mandate them.
Discussion came last week as the board revisited past financial reporting tied to the elementary center, which opened in 2018, raising questions about transparency and cost thresholds.
“When the elementary center was built, there were lingering questions about where the money went,” director Barbara Bowes said. “It was presented as $32 million, but the real cost was likely $6 or $7 million higher. The public should have known this much earlier.”
As the board examined PlanCon J, a state-required document finalizing project accounting for the elementary center, on Monday, Bowes noted that the document referenced a “2015B” bond issue that does not appear to exist in district records.
Consulting Business Manager Matt Lentz explained that the discrepancy involved how initial financing was documented in the state submission.
“When a project is approved through the Pennsylvania Department of Education, you identify the funding sources up front,” he said. “The bond issues were identified and then spent for this project. Our project accounting has now been audited, and PDE has accepted it.”
According to audited statements, the total project cost reached $38.3 million, funded primarily through bond issues totaling more than $34 million, along with an ACE grant of $844,029 and additional local contributions. The largest portion of spending went toward construction costs, which accounted for over $33.3 million, including general building, plumbing, heating, ventilation and electrical systems. Architectural fees, equipment, site costs and financing rounded out the expenditures.
The financial review set the stage for a broader policy discussion led by Board President Joy Beers, who said she reviewed state law governing referendum thresholds.
“The threshold is very high, based on cost per student,” she said. “You could have a project that costs $25 million and it still wouldn’t require a referendum.”
Under the current Pennsylvania formula, the state determines referendum thresholds based on a “per-pupil construction cost” tied to rated pupil capacity. For elementary school projects, the construction cost threshold is set at approximately $4,700 per rated pupil, while secondary schools use $6,200 per rated pupil, according to a state PlanCon website.
The calculation involves converting full-time-equivalent capacity to rated pupil capacity, multiplying that by the per-pupil rate, and comparing it to project bids to decide if a referendum is mandated.
Beers argued that local control should allow a lower threshold.
“If we’re repairing or maintaining facilities, that shouldn’t require a referendum,” she said. “But if we’re adding new square footage, taxpayers should decide. Palmerton has a $15 million project now, and our own stadium project was about $6 million. I think the stadium should have gone to voters in my opinion.”
Other board directors urged caution, citing legal uncertainty about whether the district can legally lower the bar below the state’s threshold.
“We need to ask our solicitor if we’re even allowed to lower the bar,” Bowes said.
Beers volunteered to draft proposed policy language for the board’s review.
“If members agree, I’ll work on a proposal,” she said.
No vote was taken last week.
The board agreed to continue the discussion at a future meeting.