Mount Lebanon School District outlines budget with heavy reliance on local real estate taxes

The Mt. Lebanon School District's recent regular meeting on March 17, 2025, highlighted significant discussions regarding the district's budget for the upcoming fiscal year. The meeting focused on the three primary revenue sources that sustain the district's financial framework: local, state, and federal funding. Local revenue, primarily derived from real estate taxes, constitutes a substantial 77% of the budget, with real estate taxes alone accounting for approximately 65%. This reliance on local funding underscores the importance of property values and tax assessments in shaping the district's financial health.

The district's projected revenue from local real estate taxes for the 2025-2026 school year is estimated at $80,850,640. However, the Act 1 index, which governs tax increases, has decreased significantly from 6.2% to 4%, resulting in a projected revenue increase of only $3.4 million. The district has applied for exceptions to this limit, particularly for special education funding, which may yield an additional $748,701 if approved. The outcome of these applications is expected by March 26, 2025.

State funding, which makes up about 23% of the budget, is projected to remain flat, with only a slight increase anticipated. This stagnation in state support raises concerns, as it does not align with the rising costs of education, particularly in special education. Federal funding, while minimal at 0.4%, is also projected to remain stable, primarily supporting at-risk learners.

The meeting also addressed the district's expenditures, which are projected to reach $126,647,338. A staggering 75% of this budget is allocated to personnel and employee benefits, leaving limited resources for other essential areas such as curriculum development and technology. The district is facing a projected budget shortfall of $1,528,081 for the upcoming year, prompting discussions about potential staff furloughs and the need for strategic budget adjustments.

In response to these financial challenges, the district aims to avoid furloughs by exploring staff reassignments and attrition. The board plans to conduct a budget forum on April 7, 2025, to engage the community and outline the proposed budget, with final approval expected by May 21, 2025.

Overall, the discussions during the meeting reflect the ongoing financial pressures faced by the Mt. Lebanon School District, emphasizing the need for careful planning and community involvement as they navigate the complexities of funding education in a challenging economic environment.