School districts still have several months before they must approve next year\u2019s budgets, but preliminary budget discussions for the 2026-27 school year have included both projected revenue shortfalls and district commitments to not exceed the state-mandated Act 1 index that governs how much they can raise taxes.<\/p>\n
Last year, 14 of 17 Lehigh Valley school districts raised taxes, citing the need to finance construction, avoid deficits and cover rising salary and benefit costs<\/a>.<\/p>\n Here\u2019s a look at where budget talks, which will continue through the spring before districts adopt final budgets in June, stand:<\/p>\n Allentown<\/p>\n District budget discussions so far have centered on relief that state funds are now flowing. Allentown received a $25 million increase in state funding last year, the third-largest across Pennsylvania districts.<\/p>\n Allentown was one of three Lehigh Valley school districts that did not implement a tax increase in last year\u2019s budget.<\/p>\n The district\u2019s Act 1 index is set at 5.4% for the 2026-27 school year. The board passed a resolution<\/a> to not exceed that index during its Oct. 23 meeting.<\/p>\n \u201cAs in prior years we will aim to provide a balanced budget that addresses the goals and visions of the district while being fiscally responsible,\u201d Interim Chief Financial Officer Jeffrey Cuff said in an email. \u201cThe governor will be releasing his budget in early February. Because our budget is approximately 67% state funded, once the budget is released it will help us to frame the district\u2019s approach to the 2026-27 budget.\u201d<\/p>\n Bangor Area<\/p>\n The district implemented a 0.97% tax increase in last year\u2019s budget. Its Act 1 index for 2026-27 is set at 4.5%.<\/p>\n Bethlehem Area<\/p>\n A budget update<\/a> during the Dec. 1 school board meeting projected a $16.1 million deficit for the 2026-27 school year.<\/p>\n Chief Financial Officer Harry Aristakesian noted that the current state budget included more funding than the district had assumed in its 2025-26 budget, allowing an anticipated $5.7 million pull on reserve funds to be dropped to $3.2 million.<\/p>\n \u201cThe picture is definitely getting better, we\u2019re just not quite there,\u201d Aristakesian said of ongoing budget planning.<\/p>\n During committee discussions, the district also reviewed an Act I resolution<\/a> that would hold a 2026-27 tax increase at or below 4.2%. Last year\u2019s budget saw a tax increase of 3.63% for Lehigh County residents and 4.79% for Northampton County residents.<\/p>\n Catasauqua Area<\/p>\n The board received a preliminary budget update during its Nov. 11 meeting.<\/p>\n The district\u2019s Act 1 index is set at 4.4% for the 2026-27 school year. Last year the district raised taxes 6.3% for Lehigh County residents and lowered taxes 4.5% for Northampton County residents.<\/p>\n Easton Area<\/p>\n A budget presentation<\/a> presented to the board Dec. 2 projected a $7 million deficit for the 2026-27 school year.<\/p>\n \u201cThat is where we start with budgets usually,\u201d Chief Financial Officer Jack Trent said, \u201cso it\u2019s not something to sound the alarm about just yet.\u201d<\/p>\n Plans for a new, $298 million high school<\/a> dominate the district\u2019s construction needs, and the preliminary budget assumes a 3.5% tax increase following the capital projects plan. Taxes increased at that same level in last year\u2019s budget.<\/p>\n The board also approved an Act 1 resolution<\/a> that would keep tax increases within the index of 4.5%.<\/p>\n Ongoing budget discussions will focus on protecting and rebuilding the district\u2019s fund balance, Trent said.<\/p>\n \u201cThe district has been utilizing its reserve funds to cover budget gaps for multiple years now,\u201d Trent said. \u201cIt\u2019s been identified as an unsustainable practice for us.\u201d<\/p>\n An updated budget will be presented to the board in March.<\/p>\n East Penn<\/p>\n School board members approved an Act 1 resolution<\/a> during their Dec. 8 meeting. It would hold tax increases at or below 4.1%. Last year\u2019s budget included a 4% tax increase.\n<\/p>\n The resolution notes that the requirements of its 2025-26 Ready-to-Learn Block Grant bars the district from exceeding the Act 1 index for the 2026-27 school year. A voter referendum would be required to take that step, Business Administrator Robert Saul said.<\/p>\n Board members also reviewed a $142 million redistricting proposal<\/a> presented as an alternative to the K-8 realignment option<\/a> paused this summer.<\/p>\n In part due to the greater cost of the redistricting proposals, board members and district administrators emphasized that both options are still under consideration.<\/p>\n Nazareth Area<\/p>\n The district increased taxes 2.95% in last year\u2019s budget. For 2026-27, its Act 1 index is set at 4.1%.<\/p>\n Northampton Area<\/p>\n Superintendent Joseph Kovalchik said at the school board\u2019s Dec. 1 meeting that the first presentation of next year\u2019s budget will come this month. It\u2019s first full board meeting is Jan. 12.<\/p>\n Last year\u2019s budget included a 4% tax increase. The district\u2019s Act 1 index for 2026-27 is set at 4.2%.<\/p>\n Northern Lehigh<\/p>\n School board members approved an Act 1 resolution<\/a> on Dec. 8. The resolution, which passed without discussion or opposition, limits a tax increase to 4.8%. Last year\u2019s budget included a 2.5% tax increase.<\/p>\n The district is looking to pass a preliminary budget in early April, said Director of Business Affairs Sherri Molitoris.<\/p>\n \u201cWe are reviewing considerable projected costs for facility repairs and preventative maintenance,\u201d Molitoris said in an email. \u201cWe must also consider the rising costs of health care benefits for our employees.\u201d<\/p>\n Northwestern Lehigh<\/p>\n The school board will review a budget presentation on Wednesday.\n<\/p>\n \u201cWe are recommending to stay with the Act 1 index, so we will ask for the resolution to be approved on the January 21st meeting,\u201d Business Administrator Christie Steigerwalt said in an email.<\/p>\n The district\u2019s Act 1 index for 2026-27 is set at 3.5%. Last year\u2019s budget raised taxes at that same level.<\/p>\n Parkland<\/p>\n A preliminary 2026-27 budget presented to the school board on Nov. 10 projects a $20 million deficit prior to any tax increase, according to board minutes.<\/p>\n \u201cThe Act 1 index of 3.5% would generate about $5.8M of new tax revenue and bring the shortfall to $14M,\u201d the minutes<\/a> state. Last year\u2019s budget raised taxes 4%.<\/p>\n Director of Business Administration Leslie Frisbie advised the board to adopt a resolution to stay within the Act 1 index. More discussion will come this month.\n<\/p>\n Pen Argyl<\/p>\n During the Nov. 18 board meeting, minutes note that Business Manager Jamie Achenbach advised the school board that district administration recommends staying within the Act 1 index of 4.4%.<\/p>\n A resolution<\/a> to that effect was placed on the board\u2019s Dec. 2 agenda.<\/p>\n Pen Argyl was one of three Lehigh Valley school districts that did not implement a tax increase in last year\u2019s budget.<\/p>\n Salisbury Township<\/p>\n Department and building budgets were due Monday, Chief Financial Officer Dawn Nickischer said in an email.<\/p>\n \u201cI will spend a good portion of January entering information into our accounting software and also reviewing salary projections based on each specific contract\/agreement the district has with out staff. I most likely will bring revenue projections to the board in February and a very high level look at expenditures,\u201d Nickischer said. \u201cIt will not be until March that I will be able to provide a more complete projections, at which time discussions will start on ways to close any gap we may be faced with.\u201d<\/p>\n The district raised taxes 3.8% in last year\u2019s budget. Its Act 1 index for 2026-27 is set at 3.5%. At its Nov. 19 meeting, the board approved a resolution to not exceed that index.<\/p>\n Saucon Valley<\/p>\n School board members addressed a resolution to not exceed the Act 1 index, which is set at 3.5% for 2026-27, during their Dec. 16 meeting.<\/p>\n Saucon Valley was one of three Lehigh Valley school districts that did not implement a tax increase in last year\u2019s budget.<\/p>\n Southern Lehigh<\/p>\n The Nov. 24 school board meeting agenda included a resolution that would limit a tax rise to 3.5%. Last year\u2019s budget raised taxes 2.6%.<\/p>\n \u201cThe District has determined that, even in a worst-case scenario, it will not be necessary to raise taxes by more than the index in order to balance its budget for the fiscal year 2026-2027,\u201d the resolution<\/a> states. The board approved the resolution with no discussion or opposition.<\/p>\n Whitehall-Coplay<\/p>\n The district\u2019s adjusted 2026-27 Act 1 index is 4.7%. Discussion on an opt-out resolution to limit tax increases to that level is scheduled for the Jan. 12 school board committee meeting, with the board expected to adopt the resolution at its Jan. 26 meeting.<\/p>\n Taxes rose 4.6% in last year\u2019s budget.<\/p>\n Wilson Area<\/p>\n