Northern Lebanon school board moves forward with 4.2% tax increase

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The Northern Lebanon school board voted 5-4 on May 12 on a 2026-27 preliminary final budget that would increase district taxes by 4.2% if the final budget is approved in June.

Board members Shen Kreiser, Benjamin Moyer, Troy Williams, and Martha Blough voted no.

A 4.2% increase will bring the millage rate from 17.8250 mills to 18.5736. A 4.2% hike is the maximum allowed under the adjusted Act 1 Index. For a homeowner in the district with a median-assessed value property of around $177,000, the increase would mean roughly $139 in new taxes per year.

The meeting’s agenda included three tax increase options that board president Barry Naum said were brought onto the agenda at the request of other board members. The other options were 3.99% and 3.75%. Because the first vote at a 4.2% increase was accepted, there was no vote for the other two. If none of the listed options were approved, Naum said they would have entertained other proposals.

The budget, as available in the online agenda and below, shows $54,961,598 in estimated revenue and expenses.

Naum previously told LebTown that the factors necessitating a tax increase included inflation, upcoming renovations on the Lebanon County Career and Technology Center, and charter school funding.

The CTC is not able to levy taxes itself, so it relies on its six member districts for funding. Many districts throughout the county are considering tax increases to handle a potential upcoming renovation project, though the final cost has not been determined.

There was discussion between board members before the vote, with some supporting the 4.2% increase to start putting money toward the CTC project and others preferring a smaller tax increase.

Williams said he was in favor of a smaller increase to start saving for the CTC costs. He said 4.2% would provide “the best opportunity to set the district up for success” for the future, but 3.75% would still allow them to meet obligations and set aside $200,000 for the renovations.

“While construction may be a few years away, good stewardship means we begin saving now, and our goal is to set aside roughly [$200,000] to $300,000 each year so that when the bills do come due, we’re not forced to make any sort of panic decision or pass a suggen larger increase to the taxpayers at that time,” he said. “Saving today is how we can protect taxpayers tomorrow.”

Kreiser, who previously urged the board to consider creating a budget with a lower increase in mind rather than the maximum 4.2%, said these tax hikes will affect their residents’ budgets.

“I’ve worked in local government for a long time, and every year when we are asked to make a budget, the instructions are to increase revenue and cut costs by a few percent in the name of trying to avoid tax increases,” she said. “In tough economic years, cuts to budgets are made, and positions are left unfilled because there is a commitment to be fiscally responsible. However, the district has a history of using the max available tax increase allowable by law as a starting point and making a budget to fit that amount, which is always increasing our spending.”

David Kline, who voted in favor of the increase, said he recognizes that every dollar matters to families, and the decision to raise taxes is never easy.

“Inflation has impacted nearly every part of our budget,” he said. “These increases are not theoretical. They are real, ongoing, and are outpacing what districts can absorb without making difficult decisions.”

Kline said it would be responsible for the district to have a healthy fund balance, and putting tax increases off just pushes problems down to future boards and generations.

The board will vote on its final budget and tax rate at its June 2 meeting.

In other business, the school board:

Approved the resignation of substitute board secretary Leanne Martin and the appointment of new substitute secretary Kelly Bastek-Jones. Martin was then appointed as the board treasurer.

Voted in favor of all consent agenda items listed on the meeting’s agenda.

The Northern Lebanon school board will meet next on June 2 at 6:30 p.m. in the Northern Lebanon District Office board room at 346 School Drive, Fredericksburg.

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Northern Lebanon school board moves forward with 4.2% tax increase

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