HOLLIDAYSBURG — By a 5-4 vote, the Hollidaysburg Area School Board adopted the final 2026-27 general fund budget with no tax increase, leaving the district with a deficit of about $4.2 million.

Prior to adopting the final budget, the board struck down, by a 4-5 vote, a motion made by Joseph Antonowicz to adopt the budget with a tax increase to the full Act I Index, which would have dropped the deficit to about $3.2 million.

Board members Ying Li, Missy Sullivan, Kenneth Snyder, Cara Eardley and Michele Luther voted in favor of adopting the final budget without a tax increase, while Jesse Blank, John Wells, Carmen Bilek and Antonowicz voted in favor of raising taxes.

Those who voted in favor of the tax increase argued the additional income would have kept the district’s revenues up with inflation and placed less financial strain on the district’s future board members and taxpayers.

Those in favor of no tax increase argued the revenue received from a tax increase would be insignificant compared to the cost of certain capital projects.

Eardley said she felt it was unfair to “hurt the public” when the district is already in a position that it will need to pursue bonds with interest should officials undertake future projects that would cost millions.

Some board members also noted they have faith in the current administration’s handling of district funds and feel the district’s students aren’t suffering from a loss of academic or extracurricular opportunities as a result of not raising taxes.

With no tax increase, the district’s real estate tax rate is now set at 10.5193 mills, or $10.52 per every $1,000 of valued property assessment. Revenues in the budget are listed at $58,896,520 and expenditures total $63,185,925.

The shortfall will be covered by the district’s fund balance, which totaled $12.1 million in May but will drop to $7.9 million with the deficit if no other funds are allocated by the state.

Cellphone ban

In other business, the board approved a bell-to-bell cellphone ban for the junior high and senior high that will be effective Aug. 26 — the first day of school — pending the first reading of the policy at the July 15 board meeting and a second reading at the Aug. 12 meeting.

If the second reading is approved in August, students in the junior high and high school will be required to keep their cellphones silenced and stored out of sight unless they are granted an exception specifically outlined within the policy, which will permit use for medical emergencies among other reasons.

The ban was approved unanimously Wednesday after a previous motion that would’ve forced students to keep their phones stored in either their locker or vehicle during school hours failed by a 6-3 vote.

Luther said she believes restricting students further by not allowing them to carry their phones on them would only lead to an uptick in retaliation and behavioral outbursts. The students should be treated like adults and be given the opportunity to handle their devices maturely, she said.

Li agreed, but noted she thinks that idea should only apply to the high school and not extend to students at the junior high.