Shortly before Earl Paules cast his vote in favor of Palmerton Area School District’s 2021-22 budget, he summed up the choice facing him and his colleagues Tuesday night.

“Everyone I talk to understands if we don’t raise taxes, eventually we’re not going to have any money left,” Paules said. “Everybody is OK with it.”

Minutes later, Paules was one of nine Palmerton members to unanimously approve a $35.26 million budget that raises real estate taxes 4.1%, the highest allowed by the state’s Act 1 index.

The budget calls for revenues of $33.66 million with the difference made up by use of reserves.

“It’s just what we have to do,” Paules said of the decision. “Ryan (Business Manager Ryan Kish) has done a fantastic job laying it all out for us these past few months. Those few years that taxes were not raised, they should have been. If we would have raised them a mill each year, this year’s increase would be just over a quarter of a mill.”

This year’s tax increase follows a 1.8% tax increase last year. For two consecutive years before that, Palmerton did not raise taxes.

In a budget presentation in early May, Kish outlined future financial projections for the board. Without tax increases, he said at the time, Palmerton’s fund balance could be depleted by the end of 2023-24.

The 4.1% tax increase will generate $695,000 in revenue. A homeowner with an average property assessment will pay an additional $104.

Little discussion preceded Tuesday’s budget vote, but in the months leading up to it, directors weighed in regarding the plan.

“This has been an awful year,” board President Kathy Fallow said in May. “Our kids have suffered so much. Our teachers have dealt with so much. I would be in favor of an (Act 1) index tax increase. I know that won’t fall softly on anyone’s ears, but I think our kids need it.”

The budget includes two new teaching positions including one for high school technology and another for elementary special education.

“We really need the technology teacher,” high school Principal Paula Husar told the board earlier this year. “If we would have had a normal year this year, I don’t know how we would have met graduation credits for technology. If we don’t get a technology teacher, we’ll have to look at lowering the credits for kids to graduate with their technology stipulation. There are no ifs ands or buts about it.”

Major budgetary increases over 2020-21 include an additional $837,000 for salaries and benefits, $170,000 for the Public School Employees’ Retirement System contribution, $429,000 in medical benefits.

Palmerton also budgeted an additional $200,000 for charter school costs.