Nazareth Area School Board approves tax increase up to 2.5 percent

FROM THE EXPRESS TIMES

The Nazareth Area School Board on Monday authorized the district to consider a property tax increase up to 2.5 percent in next year’s budget.

The district hopes to increase property taxes 1.7 percent or less, but since most 2011-12 revenues still are just estimates, officials need some flexibility, Superintendent Victor Lesky said. The district must approve its preliminary budget by Feb. 14, before most of the revenues will be known, he said.

The district will receive its state aid figures in March and its local real estate valuations in April, and it won’t know about federal assistance until June, Lesky said. The district already is expecting a state aid reduction at least back to 2008-09 figures, he said.

“If those dollars are cut even further, below the 2008-09 level, this gives the board the option to debate between the 1.7 and 2.5 levels,” he said.

The district has proposed a $68.8 million budget for 2011-12, a 1.1 percent increase over its current budget, Lesky said. Property taxes will need to increase more than expenditures because of the expected decrease in state aid, he said.

School board directors voted 6-1 to allow the property tax increase up to 2.5 percent, with Tom Maher voting no. The directors said they hope they do not need to raise taxes by 2.5 percent, but they understand the need for flexibility.

“We need to determine our budget without knowing what our revenue is, which is ridiculous,” school board member Linda McDonald said. “My goal is to not come in anywhere near the 2.5.”

Lower Nazareth Township resident Hayden Phillips said the district should be looking at tax cuts, not tax increases.

“The benchmark you guys have of the 1.7 or the 2.5 is the wrong benchmark,” he said. “The benchmark should be how can we cut it, or if not, come in at zero.”

The school district increased property taxes 2.96 percent for both the 2009-10 and 2010-11 budgets. District residents currently pay 46.9 mills in school taxes, or $2,345 for every $50,000 of assessed property value.