Palmerton Area School District has changed course for the final time on its 2019-20 budget, narrowly passing a spending plan Tuesday night that calls for no property tax increase.

Earlier in the meeting, the board voted down a proposed 0.75-mill tax increase by a 6-3 vote. Directors Kate Baumgardt, Kathy Fallow and Sherry Haas voted for the increase, while Charles Gildner, Tammy Recker, Josann Harry, Barry Scherer, Josh Smale and Earl Paules opposed it.

Without a tax increase, Palmerton is projecting over a $2 million deficit for 2019-20, but Gildner cautioned the board that it isn’t uncommon for the district to propose a deficit and end with a surplus.

“Over the last eight years,” Gildner said, “we have projected a deficit and not once have we actually had one. In fact, over that time, we have put back at least $741,000 into the fund balance at the end of the year. One time we put back $2.3 million.”

In 2012-13, Gildner added, the district’s fund balance was at $6 million and it grew to $11 million by 2017-18. The district recently transferred $4 million from its fund balance to a capital reserve fund.

If the current projected deficit for 2019-20 would actually hold true, Business Manager Ryan Kish said, the district’s fund balance could drop to under $4 million.

With major projects such as a new secure entrance at S.S. Palmer Elementary and a renovated music room in the high school on the table, the shrinking fund balance concerns Scherer. During budget discussions, Scherer indicated he supported a tax increase larger than 0.75 mills.

“Our buildings are in need of repair and you can’t do that with smoke and mirrors,” he said. “It takes money.”

Scherer and Haas said they recall a time in the not too distant past when the district’s fund balance had hit rock bottom. Palmerton’s music program was cut to a point where the high school bands were practically nonexistent and have only recently regained their stride. Other programs were also on the chopping block.

“I remember the uproar of the community when we cut things,” Haas said. “That sticks with you.”

After the vote for a 0.75-mill increase failed, the board put a motion on the table for a budget without a tax increase. It passed 5-4 with Recker, Harry, Smale, Paules and Gildner voting in favor of it, and Scherer, Fallow, Baumgardt and Haas in opposition.

Like Scherer, Fallow said it takes money to make improvements.

“We just did a survey regarding the search for a new superintendent and one of the things we heard the most was please improve our students’ safety, please provide more technology and more opportunities for students,” she said. “We didn’t hear a lot about lowering taxes. People don’t want to see programs cut again. It’s only been four years since we had no band.”

Kish said a 0.75-mill tax increase would have generated $217,000 for the district, which Gildner called a “drop in the bucket.” The average taxpayer in Palmerton would have seen an increase of $37 on their tax bill.

“What do we need that $217,000 for right now?” he said. “While $37 may not sound like a lot to you or me, it might be a lot to someone else.”

Following the vote, Palmerton resident Anne Cronk said while nobody wants their taxes raised, she would much rather see smaller increases along the way than a large increase in a few years to help generate funds for much-needed projects.

“All you have to do is walk through our buildings,” Cronk said. “S.S. Palmer and the high school are very old. We can’t keep putting things off because of not having any money.”