UPPER SAUCON TWP., Pa. — Southern Lehigh School Board has approved a $78.9 million budget for the upcoming fiscal year with a 2.63% tax increase.
School directors unanimously approved the spending plan Monday meeting, increasing the millage rate to 17.7130.
“We’re in a very good position."Louis Pepe
That will be the lowest millage rate in the Lehigh Valley as of the 2026 fiscal year, according to Southern Lehigh’s Director of Business Services Louis Pepe. The fiscal year begins July 1.
“We’re in a very good position,” Pepe said.
The averaged assessed value of a Southern Lehigh home for tax purposes is $293,794. Based on that value, a homeowner would owe $5,203.97 in school property taxes next fiscal year.
Some eligible Southern Lehigh residents will receive a $194.72 reduction to their property tax bill thanks to a state program that is funded through gambling revenue.
One of the drivers for the 2.63% tax hike is Southern Lehigh’s addition of nine staff positions, for an expense of $959,000.
Those positions include various teaching and counseling roles, as well as a media specialist at the high school and a student information coordinator in the district's administration.
In part, the tax increase will support funding the salaries and other related costs for those positions.
Decade of low taxes
In the past two fiscal years, Southern Lehigh held the line on school property taxes. In fiscal year 2023, the school board approved a 1.9% tax hike.
Over the past 11 years, Southern Lehigh’s average tax increase has been 1.3%, Pepe said. In that same time period, the average increase for the Act 1 Index has been 3.08%.
The Act 1 Index dictates the maximum tax increase a school board can approve each year without a tax referendum.
Southern Lehigh school directors could have hiked taxes 4% based on the index for the upcoming fiscal year.
Southern Lehigh did not make any cuts for the 2025-26 budget, nor did the district borrow from its fund balance.
The district currently has $32.1 million in savings. Of that, $27.4 million has an assigned purpose and $4.7 million is unassigned.
