N. Lebanon School District to prepare 2026-27 budget with 4.2% increase

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The Northern Lebanon School Board voted 5-4 on Feb. 10 to prepare the 2026-27 budget with a 4.2% increase, which is the maximum allowed under the adjusted Act 1 Index.

The approved motion did not set the next year’s tax rate. The board will vote on the proposed final budget in May and then adopt the final budget in June, according to its budget calendar.

Board members Shen Kreiser, Benjamin Moyer, Martha Blough, and Troy Williams voted against the motion.

Board president Barry Naum said he would start the conversation at the 4.2% increase and, if that motion failed, the board could present and vote on other percentages.

“I think, unfortunately, given the state of funding within the commonwealth and three particular issues that are directly impacting this district, I don’t see any option for us but for us to vote for an index tax increase,” he said. “I’m not happy about increasing property taxes — nobody is.”

Naum cited rising inflation, possible upcoming Lebanon County Career and Technology Center renovations, and charter school funding. Until charter school funding is changed, he said, the district is responsible for “funding our competition.”

Even with a 4.2% increase, he said the district’s reserve fund balance will decrease by $990,000 because of those three factors. After the meeting, Naum said the current reserve funding is about $9 million, with $4.2 million being unassigned funds.

“When that fund balance gets reduced, that’s where I think districts find themselves in trouble,” he said.

Superintendent Gary Messinger said the balance is there for emergencies, and there’s “no magic number.”

Board vice president Williams said the budgeting process gets harder and harder each year. He said he’d rather do steady increases each year rather than have to make up for a deficit in the future with a large jump. He said he wasn’t sure if he fully supported the 4.2%, and he ultimately voted against the motion.

Kreiser was one of the more vocal critics of the motion. She said she was surprised the board wanted to start at a 4.2% increase rather than beginning with a lower figure.

“I understand that we have costs that we can’t necessarily control via inflation and CTC renovation, but I’ve seen some stuff lately that maybe there’s opportunities for grants for CTC renovation that maybe that doesn’t have to totally fall on the back of the taxpayers of Lebanon County,” she said. “I’ve seen other counties get Community Development Block Grants to fund their CTCs, so I feel like there are more avenues there to be explored before we just jump to what we don’t even have a final number for yet, because we don’t have a final decision from CTC on that renovation.”

Kreiser said there’s an opportunity to give taxpayers a break.

Blough said she would prefer the board start at a 2% increase while also looking at lowering other costs and getting students back from charter schools.

Board members David Kline and Staci Murray both supported the 4.2% starting number. Murray said not planning and not having an increase this year could lead to more significant tax increases in the future.

Several board members said they were confident that the administration would advise the board when there is an opportunity for them to levy a smaller tax increase or even scale back the millage rate.

Northern Lebanon’s 2025-26 budget raised the millage rate 2.76% to 17.825. A 4.2% increase for 2026-27 would mean an increase of around 0.7487 mills and a new rate of about 18.5737 mills.

In other business, the board:

• Heard a report from Melissa McInerney about English Language Arts and foreign language teachers using artificial intelligence to help make lesson plans for the new school year. She said it can provide a starting point for staff, who still have to check all of the outputs and make edits to best suit their needs.
• Approved an agreement with Lancaster General Medical Group to provide medical services. The agreement states it will be active for three years, starting Sept. 1, with an automatic two-year renewal term. The contract outlines seven health center addresses in Lancaster County and one new health center coming to Lebanon County.
• Approved all human resources, budget and finance, instructional, facility, and policy items outlined in the agenda.

The Northern Lebanon school board will meet next in the Northern Lebanon District Office Board Room at 346 School Drive, Fredericksburg, on March 3 at 6:30 p.m. for a committee meeting. The next board meeting will be on March 10 at 6:30 p.m.