Fox Chapel Area School District proposes 2.3% tax increase in final budget approval

The Fox Chapel Area School Board convened on May 5, 2025, to discuss the proposed final budget for the upcoming school year, highlighting significant changes in revenue and expenditures. The meeting underscored the district's financial strategies in response to fluctuating property values and state funding adjustments.

The proposed budget reflects an increase in revenues by approximately $1.9 million, primarily attributed to a recommended 2.3% tax increase on real estate. This increase, advised by the resource planning advisory group, is expected to generate around $1.7 million in additional base revenues. However, the district also reported a decrease in taxable assessments by 0.37%, resulting in a revenue loss exceeding $250,000. This decline aligns with the district's expectations based on the certified values received in May 2025.

In addition to the tax increase, the district will benefit from a $280,000 rise in property tax relief allocations from the state, totaling $2,552,187 for the 2025-2026 school year. These funds, sourced from state gaming revenues, are designed to alleviate local tax burdens through the homestead exemption program. Notably, the number of approved homestead exempt properties has increased to 7,843, representing 64% of all taxable residential properties in the district.

The implications of these financial adjustments are significant for local homeowners. The proposed budget includes a reduction of over $14,800 in assessed value for homestead exempt properties, translating to an approximate $326.17 decrease in tax bills. Importantly, homeowners with assessed values at or below $70,000 will see a reduction in their tax bills compared to the previous year, despite the overall tax increase.

The discussions during the meeting reflect the district's ongoing efforts to balance fiscal responsibility with the need to support educational programs and services. As the board prepares to finalize the budget, the community will be watching closely to understand how these financial decisions will impact local families and the overall educational landscape in the Fox Chapel Area School District.