Mount Lebanon presents balanced 2025-26 budget with 4.7% Act 1 millage increase; voting set for May 21

Mount Lebanon School District leaders presented a balanced final budget for fiscal 2025-26 that includes a proposed real estate tax increase tied to the Act 1 index and special education exceptions and leaves the district’s fund balance unchanged.

The district’s proposed 2025-26 revenues total $125,119,257. “This budget is balanced and does not use fund balance or furloughs to balance it,” Dr. Friese said during the presentation, summarizing the administration’s recommendation.

The administration told the board the millage increase has two parts: an Act 1 index increase of 4.7% (an added 0.0013771 mills with an estimated $3.4 million revenue impact) and approved special-education exceptions adding 0.002724 mills for about $748,000. Together, the presentation said, those changes would move the districtwide millage from 0.0293005 to 0.03095 — an increase of 0.0016495 mills and projected district revenue of $4,159,908. The administration showed sample homeowner impacts, including an estimated $24.79 monthly increase for a $200,000 house and $68.73 monthly for a $500,000 house.

On the expenditure side, presenters said there were no substantive changes to planned spending since the April budget forum and that final expenditures total $125,119,057. The administration credited several savings and adjustments, including unfilled positions (4.8 full-time equivalents), reduced stipends and overtime, lower travel costs, and negotiated lower vendor quotes. Cost drivers called out in the presentation included a 3.5% salary increase over 2024-25, a 5.7% increase in health insurance premiums, a 3% rise in vision and dental costs, and a certified PSERS employer contribution rate of 34%.

The presentation noted program investments: curriculum purchases for K–6 ELA, K–6 science and middle-school math totaling roughly $665,000–$677,000 and built-in tuition increases for charter and specialized placements (3% charter tuition; roughly a 10% increase to Parkway tied to enrollment). The administration also budgeted about $119,000 for capital projects in buildings and grounds.

Risks identified included potential federal interest-rate actions, continuing PSERS rate increases through FY2034, health-insurance premium growth, continuing transportation and tuition cost increases, commercial property tax appeals, and variability in the common level ratio that affects real-estate tax collections and refunds. The presentation listed opportunities in potentially higher state basic-education or special-education funding and additional grant awards.

Board members thanked district staff for producing a balanced budget under difficult conditions and reminded the public that the formal votes on the budget-related resolutions — including the final budget, the homestead/farmstead reduction and the millage resolutions — will occur at the May 21 voting meeting to meet the state’s 30-day notice window.

The administration also presented a proposed Homestead and Farmstead resolution reducing the homestead credit to $326.39 per homestead and an Act 511 resolution that would maintain local earned-income, real-estate transfer and local-services tax rates (0.5% earned income tax; 0.5% real-estate transfer; $5 local services tax). The board’s agenda materials presented the recommended final budget in the state-required format and listed the proposed actions for board approval at the scheduled May 21 vote.

Financial-status slides shown to the board projected no use of fund balance in 2025-26 and a path to modest increases in fund balance over the following three years if the presentation’s revenue and expenditure assumptions hold — including 1.5% earned-income tax growth and salary and benefit inflation assumptions.

Pending board action at the May 21 voting meeting are the final budget (total $125,119,257), the real-estate millage increase to 0.03095 mills, the Homestead/Farmstead resolution, and associated Act 511 local tax resolutions.