EMMAUS, Pa. — East Penn School District’s first draft budget for the 2025-26 school year raises property taxes 0.84 of a mill, district administrators announced Monday.
If adopted, the district’s property tax levy would rise to 21.84 mills, or $21.84 for each $1,000 of assessed property value.
The proposed hike works out to a 4% increase, the largest the district can make this year under state law without a referendum or a seldom-granted exemption.
“Again, we’re very early in the process.”
East Penn Business Administrator Robert Saul
Together with a small rise in property values, the increase would net the district $5.5 million more in property tax revenue over the next school year.
In all, East Penn’s budget proposal accounts for more than $194 million in expected revenue and $197 million in spending.
The remaining $3.1 million deficit would come out of the district’s fund balance.
“A portion of that is the anticipated network upgrade and improvements, and at this point there is a small structural deficit the administration is still working on,” East Penn Business Administrator Robert Saul said.
“Again, we’re very early in the process.”
Tax rate increases in 9 or 10 years
The district’s 2025-26 budget proposal is still very much in flux, and likely will continue to be as revenue estimates firm up in the coming months.
For example, Pennsylvania’s state budget for the same time period will not become law until this summer.
Gov. Josh Shapiro's proposed state budget for 2025-26 would allocate $300,000 more to East Penn schools than the district’s budget proposal accounts for.
Pennsylvania's proposed state budget
Gov. Josh Shapiro’s proposed state budget for 2025-2026 would allocate $300,000 more to East Penn schools than the district’s budget proposal accounts for.
In the next step toward adopting the school district’s next budget, East Penn administration will present detailed spending plans for the 2025-26 school year at the Feb. 24 board meeting.
A long-range fiscal plan and capital improvements plan will follow in March; board members are scheduled to adopt a final budget in June.
The district raised property taxes nine times in the past 10 years. In 2024, its board approved a 4.12% tax increase, the largest in at least a decade.