Opting for a slight tax bump, Allegheny Valley School Board members passed the district’s 2025-26 budget Tuesday.
Revenue generated from the 1.48% increase will go toward a projected $3.2 million budget deficit, though the majority of that deficit will be made up using the district’s fund balance.
The new budget raises the millage rate by 0.315 mills to 21.7049 mills. That means a taxpayer who owns property with the median assessed value of $85,900 will pay $1,864 in school taxes — an increase of $27.
It forecasts about $7.26 million in state funding, which is about $607,000 less than the current budget. From the federal government, the budget projects $335,000, down about $22,250 from the current budget.
With a 1.48% increase, the district projects a little more than $17.7 million in local funding, which is around $77,000 more than the current budget.
That amounts to a total revenue of about $25.3 million.
Total expenditures, however, are projected to be around $28.5 million, about $2.7 million more than the current budget.
Like most school district budgets, the vast majority of the projected expenditures will go toward employee salaries and benefits in addition to paying down debt.
Though the district would fill in the deficit with its fund balance that sits around $22.4 million, board President Nino Pollino said Allegheny Valley would remain financially stable.
Throughout the budget process, several board members expressed concerns about state funding and unfunded mandates from Harrisburg, especially related to the homestead/farmstead exclusion act.
Pollino said this school year’s 2.65% tax hike and the increase for next school year can hopefully avert another increase in the 2026-27 budget, but nothing was assured.
“Guarantees just don’t happen when you’re doing these budgets,” Pollino said.
