The Bethlehem Area School Board has approved a 4.3% property tax increase for the 2024-25 school year. The decision was made during a meeting on Monday night as the district struggles with financial uncertainty from both the state and federal governments.
The new tax hike means that the millage rate will increase from 49.74 to 51.89. For a typical homeowner with property assessed at $61,514, the average annual tax bill will rise by about $133.
According to district officials, the increase was necessary to avoid major cuts to programs, staff, and services that support students.
The district’s $374 million general fund budget has a shortfall of about $5.5 million. Without clear updates on how much state funding will be available—and with federal COVID-era relief funding running out—school board members said they had no choice but to pass the hike to keep schools running smoothly.
Officials explained that part of the problem is the delay in the state budget. Pennsylvania lawmakers have not yet finalized the new education budget, which has left many districts in limbo.
Bethlehem’s superintendent, Joseph Roy, said that waiting any longer could have caused even more harm. He also pointed out that while Governor Josh Shapiro has proposed a large increase in education funding, there’s no guarantee that the final version passed by lawmakers will offer the full amount.
Several board members said they were not happy about raising taxes but believed it was necessary. “We’re facing rising costs across the board—transportation, special education, teacher salaries, utilities. If we don’t act now, we’ll have to make painful cuts,” one member said during the meeting.
The budget does include some use of reserve funds. About $2.5 million will be pulled from the district’s fund balance to help balance the budget. Even with this, the board still needed to raise taxes to cover the full shortfall.
Parents and residents who attended the meeting had mixed reactions. Some were frustrated by the higher tax burden, especially during a time when many households are already dealing with inflation and rising costs. Others said they understood the need for more funding and didn’t want to see programs or teachers cut from their children’s schools.
The federal government had provided significant COVID-19 relief funds to schools over the past few years, but that support is ending. Many districts like Bethlehem are now struggling to make up the difference.
The school board said they hoped for better long-term funding solutions at the state level so that local taxpayers don’t continue bearing the brunt of the costs.
Despite the challenges, the school board said they are committed to providing quality education and keeping class sizes small. They also said they’ll continue advocating for more support from Harrisburg and Washington, D.C., to help meet the growing demands placed on public education.
The 4.3% tax hike is set to take effect with the start of the next school year. Property owners will begin to see the increase on their upcoming bills.
District leaders said they will continue to monitor state budget discussions closely and adjust if needed, but for now, the local tax increase was the only viable option to keep the system stable.