East Penn School Board discusses K-8 realignment, budget challenges | Allentown Area

EMMAUS, Pa. — The East Penn School District Board of Directors on Monday discussed finances and plans for growth in light of increased expenses and lowered revenues.

Approved in November 2023, the K-8 realignment is planned for the 2028-29 school year.

In this scenario, all district elementary schools would house kindergarten through fourth grade. The district’s middle school students will be broken into two groups: fifth through sixth grade and seventh through eighth grade.

Monday, the board heard an updated presentation on the district’s ongoing K-8 realignment plan. Total estimated project costs for Eyer are $47.4 million and $71.8 million for Lower Macungie, said Brian Huber of Breslin Architects.

The realignment will make all district elementary schools kindergarten through fourth grade. The district’s middle school students will be broken into two groups: fifth through sixth grade and seventh through eighth grade.

District growth fuels the realignment, officials said.

According to Huber, 763 students attend the district’s Howard A. Eyer Middle School and 1,047 attend Lower Macungie Middle School. With the realignment, those numbers for Eyer and Lower Macungie increased to 1,163 and 1,229, respectively.

In 10 years, those numbers are projected to increase to 1,177 at Eyer and 1,287 at Lower Macungie.

In terms of space, Eyer will need to increase from 195,000 square feet to 208,000 square feet, while Lower Macungie will need to increase from 175,000 to 253,000 square feet, officials said.

Eyer will also see renovation and capital improvements to the library and specialized areas such as autistic support, officials said.

Lower Macungie Middle School will also see a building addition, reconfiguration of parking and driveways, an additional driveway access point, and the introduction of additional athletic facilities.

Officials said other improvements include a large two-floor lobby, new administration offices and classrooms, a reconfigured health suite, support for the library, and new technology education rooms.

Two construction phases were projected for the LMMS project, with the first set to start in July 2027 and end in August 2028, and the second planned for a September 2028 through June 2029 duration.

Two construction phases were also proposed for the Eyer project, with the first set to start in February 2028 and end in May 2029, and the second planned for a September 2028 through June 2029 duration.

The project costs might be more than the district can bear, however.

Also Monday, the district’s financial advisors, PFM Financial Advisors, examined several scenarios, including redistricting, realignment, and an affordable option that included a $75 million project to manage the district’s current capacity needs.

“Under the district’s current operating framework, expense profile and current project and cost projects, the realignment and redistricting projects do not appear affordable,” Scott Shearer with PFM Financial Advisors stated.

He said the $75 million option results in a stable fund balance and is “more manageable” as the district would not experience staffing increases as it would with a realignment.

“Even with the $75 million, I have concerns. I don’t ever want future boards or administrations to have to dip into fund balance to pay for things we aren’t fiscally able to afford,” said Board member Jeff Jankowski.

According to Shearer, district costs are outpacing tax increases even if the district’s tax rate hits the ACT limit enacted by the state at 4.1%.

When compared to prior projections, the district’s revenue is approximately $1.9 million lower, according to Monday’s presentation. The decrease reflects the lower assessed value growth than previously projected and reductions in several key revenue sources, including federal revenue and basic education funding, officials said.

Cost drivers include transportation and healthcare, which are projected to grow significantly and faster than the district’s projected revenue, Shearer said.

“It’s not where any of us wanted to be, but in a way I’m excited to see what we can come up with given the limitations that we have and the needs that we have, we can be very tactical and focused on the priorities that we need to address,” said Board Member Bill Whitney.

Board president Shonta Ford acknowledged the budgetary restraints while addressing the district’s needs.

“Nobody wants to see the taxes go up, but we also want progress, so we have to find that middle ground somewhere,” she added.

“This spring, we will bring forward projects we feel more confident are financially viable solutions to address those prioritized needs in K-12,” said District Superintendent Kristen Campbell.