CTC plans stalled after Lebanon board rejects updated Articles of Agreement

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The Lebanon school board shot down the county Career & Technology Center’s first Articles of Agreement rewrite in 30 years over wording on how the districts would service future debt.

Representatives among the five other districts, which all approved the articles governing the CTC’s participating districts, worry the rejection will delay a $79.5 million to $116.5 million project to extensively renovate or fully replace the CTC’s 60-year-old building and say the Lebanon board’s solicitor is misreading the rewritten agreement.

All six CTC member districts’ boards must approve the updated Articles of Agreement for the new version to take effect. Tuesday’s meeting of the CTC’s joint operating committee marked the fourth time the articles were returned without passage, which means the 1996 articles remain in effect.

The Lebanon school board on June 15 overwhelmingly voted against the articles, by 1-8 vote, board representative Rob Okonak said.

The articles employ the 50/50 method of determining the six districts’ future debt service allocations, which calculates debt allocation by combination of two equally weighted factors: the average daily membership of students enrolled and State Tax Equalization Board (STEB) numbers for the district’s property values.

Compounding this issue for the Lebanon district is a provision that requires a member district to declare intention of leaving the CTC at least two years before the intended withdrawal.

“Any unpaid indebtedness incurred during its period of membership remains the responsibility of and must continue to be paid by the withdrawing Member District,” Article II, Section 2.3 of the unapproved update reads.

Lebanon city, which has a high number of students attending the CTC and the lowest property values in the county, wants the debt allocation to count STEB only.

Lebanon School District’s chief financial officer and treasurer Kelly Herr said in an email to LebTown that the district passed a 3.43% property tax increase for its 2026-27 budget to raise an additional $671,800 per year in revenues, with $530,647 allocated to its CTC renovation debt service and the remainder for its 1400 Chestnut St. project. The public school district purchased the site of the former Lebanon Catholic School in 2025 for $5.25 million to use the site for future educational and administrative offices.

Okonak told the JOC that using the 50/50 method over STEB would virtually double Lebanon’s annual CTC renovation debt service to $1.1 million.

“We can’t do that. The state, next year, they’re saying the rainy day fund’s going to be gone,” Okonak told the JOC.

“There’s going to be a $5 to $6 billion deficit, as you all know we cannot depend on state money to finance our debt,” he continued. “We’re not going to do that. Never have, and that’s not our intent, moving forward. So STEB works, 50/50 doesn’t.”

With the Articles of Agreement’s two-year withdrawal provision, Lebanon’s solicitor is concerned that the district would be tied to paying $1.1 million to the renovation/construction’s cost for at least two years before it can potentially withdraw from the CTC, Okonak said.

Other counties having an urban center with surrounding districts, including Dauphin, York and Lancaster counties, use STEB as a funding mechanism, he added.

“They do it. We’re asking for consideration of the same game as far as funding,” he said.

Four of the five other school boards unanimously approved the Articles of Agreement, with Palmyra approving it 6-3 as part of the consent agenda, according to the districts’ JOC members.

“We are in a financial strangle as well,” said ELCO’s Jean Pierre Santos. “We’re all in the same boat but where we’re at, going to 50/50 is the consideration. … And that’s our kind of meeting everybody in the middle especially understanding where you guys are at and hoping you can meet us in the middle.”

Annville-Cleona district JOC member Darren Grumbine said the updated agreement, with its use of 50/50 for future debt allocation, does not bind the Lebanon district to the CTC building project.

“Correct,” Okonak responded. “But it talks specifically about funding for future projects. That language is as specific as it gets.”

“But the building project has to be unanimous from the board as well,” Grumbine said.

If there is one “no” on the CTC construction at the JOC’s August meeting, Santos said, the project could be delayed another year while inflation drives up its cost.

“I don’t want to see the kids lose that opportunity,” Grumbine added. “Solicitors need to talk. I don’t know where it’s coming from that agreeing to the articles binds you to the building project.”

At the JOC’s May meeting, design architect Beer + Hoffman of Lancaster presented cost estimates of between $79.5 million and $93 million for renovation and new construction, up to $116.5 million for all new construction, reduced by $6.74 million to $15.2 million from initial estimates.

By the end of Tuesday’s meeting, the JOC appeared ready to move forward on the renovation project before it considers the agreement update again.

Other items:

• The JOC expressed gratitude to Gary Messenger, superintendent of Northern Lebanon School District, for his two years as CTC superintendent of record. Bernie Kepler, superintendent of the Palmyra Area School District, serves a two-year term as the new superintendent of record beginning in August.
• The board approved the CTC’s final budget of $9.21 million for 2026-27 by 6-0 vote.