Mifflin County SD staff outline Act 1 index, possible $1.36 million revenue impact and $8 million state shortfall
October 16, 2025 | Mifflin County SD, School Districts, Pennsylvania
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Mrs. Knepp, a district staff member, told the Mifflin County School District Board of Directors that the Pennsylvania Department of Education on Sept. 30 posted the Act 1 index and timeline for the 2026–27 budget season and that the statewide base rate is 3.5 percent while Mifflin County qualifies for an adjusted index of 4.8 percent.
That adjusted index is the maximum tax‑increase percentage the district could adopt without seeking exceptions, Knepp said. She gave a breakdown of what a full 4.8 percent increase would mean to the district’s revenue and to taxpayers: an estimated additional $1,355,000 in revenue based on current assessed value, about $61 per taxable parcel across roughly 22,000 parcels, or roughly $5 per month on average.
Knepp also told the board that state aid is behind last year’s pace. “Last year, this time … we had collected $9.5 million in state revenue. This year … we’ve gotten $1.7 million,” Knepp said, noting a shortfall of about $8 million in state payments received through Sept. 30. She said the district receives more than 50 percent of its revenue from the state but that the district’s fund balance and previously discussed reserves mean it is not currently borrowing.
Knepp described timing and limits for local budget moves: the district is prohibited by statute from making budget transfers during the first 90 days of the fiscal year, and October is the first month such transfers are allowed.
She also noted a drop in interest income so far this fiscal year, saying the district’s interest income is down about $35,000 compared with the same period last year.
No formal budget votes or tax-rate decisions were recorded in the transcript. Board members asked clarifying questions about how the numbers were calculated and about real estate transfer tax year‑over‑year changes; Knepp said she would follow up with a more detailed report.
Looking ahead, Knepp told the board that the PDE notice is the first step in the 2026–27 budget calendar and that staff will use the index and timeline to prepare budget documents and recommendations for the board.
That adjusted index is the maximum tax‑increase percentage the district could adopt without seeking exceptions, Knepp said. She gave a breakdown of what a full 4.8 percent increase would mean to the district’s revenue and to taxpayers: an estimated additional $1,355,000 in revenue based on current assessed value, about $61 per taxable parcel across roughly 22,000 parcels, or roughly $5 per month on average.
Knepp also told the board that state aid is behind last year’s pace. “Last year, this time … we had collected $9.5 million in state revenue. This year … we’ve gotten $1.7 million,” Knepp said, noting a shortfall of about $8 million in state payments received through Sept. 30. She said the district receives more than 50 percent of its revenue from the state but that the district’s fund balance and previously discussed reserves mean it is not currently borrowing.
Knepp described timing and limits for local budget moves: the district is prohibited by statute from making budget transfers during the first 90 days of the fiscal year, and October is the first month such transfers are allowed.
She also noted a drop in interest income so far this fiscal year, saying the district’s interest income is down about $35,000 compared with the same period last year.
No formal budget votes or tax-rate decisions were recorded in the transcript. Board members asked clarifying questions about how the numbers were calculated and about real estate transfer tax year‑over‑year changes; Knepp said she would follow up with a more detailed report.
Looking ahead, Knepp told the board that the PDE notice is the first step in the 2026–27 budget calendar and that staff will use the index and timeline to prepare budget documents and recommendations for the board.
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