A 4% tax rate increase is part of the budget plan that the East Penn School District's officials outlined for the 2025–2026 academic year.
The ACT 1 Index, which establishes the highest tax increase for each district in the Commonwealth of Pennsylvania, was approved by a special session of the Pennsylvania legislature in 2006. Voter approval or an exception from the state Department of Education would be needed for higher rates.
EPSD does not satisfy the prerequisites for obtaining PDE exceptions over the authorized index, according to the Act 1 Index calculation. The district agrees to "opt out" and not raise taxes over the set rate of 4% in light of this and because it does not want to ask voters for approval beyond the Act 1 Index.
The overall revenue is projected to reach $194 million in 2025–2026, while expenses are expected to reach $207 million. The budget reveals a $3.1 million shortfall when all elements, including fund balance, are taken into account. The largest source of municipal revenue is real estate taxes, for which the district is unable to collect 100% due to a few concessions.
For example, taxes paid in the year that farmland is maintained are frozen at the same rate. In a similar vein, the district provides seniors who fulfill specific conditions with reimbursements.
