Annville-Cleona approves preliminary final budget with 4.2% tax increase

This article was funded by LebTown donors as part of our Civic Impact Reporting Project.

During a May 4 work session, the Annville-Cleona school board voted unanimously to advertise a preliminary final budget, which could increase taxes by 4.2%.

Revenue and expenditures for the 2026-27 school year are estimated at $38,166,919. An increase of 0.7604 mills would bring the rate to 18.8648, which would be lower than the 4.4% maximum allowed with the district’s Adjusted Act 1 Index.

At the median home assessed value of $166,150, a 4.2% tax hike would mean an increase of $126.34 per year.

Major cost drivers, according to a presentation that was posted in the agenda, include salary, retirement, debt service, healthcare, special education, outside cyber charter, transportation, and a potential Lebanon County Career and Technology building renovation project.

The CTC cannot levy taxes itself, so it relies on funding from its six member school districts. Many districts across Lebanon County are also considering tax increases due to the potential renovation. A final cost is yet to be determined.

Enrollment continues to increase as housing developments are built, and the enrollment growth rate is higher than that of other county schools over the past three years, the presentation states. There will be teacher contract negotiations in 2027 that could increase salary and benefit expenditures.

Also, the HVAC system at the secondary building should be addressed in the next two to seven years at an estimated cost of $12.9 million.

The secondary building’s roof replacement is also an anticipated need in the next seven to 12 years, the presentation stated. The estimated cost is $3.4 million. The board previously voted to submit a Public-School Facility Improvement Grant of $1.86 million from the Commonwealth Financing Authority, with the hope of receiving funding assistance for the roof.

The board will vote on the final budget and set a tax rate on June 8.

The proposed final budget, as available online, is available below.

At the May 11 meeting, the school board:

• Honored four Dedicated Dutchmen — Jena Hill, Matthew Small, Lauren Sobczak, and Kaila Ohrich.
• Approved the consent agenda, which included bills for payment, resignations, and a volunteer.
• Approved all fiscal, personnel, and “other” items as listed on the agenda.

The Annville-Cleona school board will meet next in the district office board room on June 1 at 6 p.m. for a work session. The next regular board meeting will be on June 8 at 6 p.m.