BETHLEHEM, Pa. — The Bethlehem Area School Board passed a preliminary $353.2 million budget Monday for the 2024-25 school year with a 3% tax increase.
If approved in the June final budget, this would be the first property tax hike since 2018-19 when school directors approved a 2.5% tax increase.
The district also plans to dip into its fund balance, using $6.5 million to close the gap between spending and revenue for the next fiscal year that begins in July.
“I think we’ve found a resting spot that asks for equal sacrifice and brings our budget into balance as is required by Pennsylvania law,” Superintendent Jack Silva said.
The tax increase, which amounts to $5.5 million in revenue, allows the district to stay on track for multi-year spending priorities, such as construction projects and collective bargaining agreements, while keeping a healthy fund balance, he said.
Based on the Act 1 Index, school directors had the option of raising taxes up to 6.4% for the 2024-25 budget.
Silva also said the state’s gambling revenue has allowed for a property tax reduction that will help offset the tax increase likely to be imposed by the district.
“For the average person the effect of money out of their pocket will be very minimal,” he said.
“For the average person the effect of money out of their pocket will be very minimal,” he said.Superintendent Jack Silva
In Northampton County, BASD residents will pay an extra $53.29 on average due to the tax hike. In Lehigh County, BASD residents will pay an additional $16.29 on average. These figures take into account rebates and reductions.
In Northampton County, the average house is assessed at a value of $62,300, and the average school district tax bill is $3,630. In Lehigh County, the average house is assessed at a value of $142,450, and the average school tax bill is $2,600.
School Board President Michael Faccinetto said Monday the district must find ways to increase revenue at least slightly each year through tax increases, state support or other means. It’s the board’s responsibility to make sure revenue keeps up with rising costs.
“Everything goes up. Our electric bill goes up, fuel goes up, labor costs go up,” Faccinetto said.
Harry Aristakesian, BASD's chief financial officer, said there’s uncertainty around Gov. Josh Shapiro’s budget proposal, which calls for a nearly $1.1 billion statewide increase in basic education funding (BEF), as well as a $50 million increase for special education funding (SEF).
Shapiro also proposed nearly $900 million as a first-year adequacy investment at the urging of the Basic Education Funding Commission, acting in response to a 2023 Commonwealth Court ruling that deemed Pennsylvania’s current education funding system unconstitutional.
“There’s a lot of positivity around BEF and SEF,” Aristakesian said. “What nobody seems to really put a finger on is the timing or amount of the adequacy funding.”
Aristakesian said he’s estimating the district will receive 50% of the amount Shapiro proposed for Bethlehem Area's BEF, SEF and adequacy funding; this estimate takes into account actual funding will likely differ from the governor’s proposal after legislators hammer out the final budget. It makes sure the district is not overestimating the funding it will receive.
Aristakesian believes it’s unlikely Harrisburg will finalize the budget before Bethlehem Area adopts its final budget June 17. While he thinks the district will receive additional funding, it’s not clear how much.
“Given all the uncertainty, we’ve had to make some assumptions,” he said.
