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Mount Lebanon School District presents balanced 2025-26 proposed final budget; board to consider tax increase under Act 1 index
Summary
At a April 7 discussion meeting, Mount Lebanon School District officials reviewed a proposed final 2025-26 budget the administration says is balanced without drawing on fund balance and outlined a proposed millage increase tied to Pennsylvania's Act 1 index; the board will vote on the proposed final budget April 21 and take a final vote May 21.
Mount Lebanon School District officials presented a proposed final 2025-26 budget on April 7 that the administration says is balanced without using the district's fund balance and includes a proposed millage increase tied to Pennsylvania's Act 1 index.
The treasurer's report for March and the budget presentation showed about $990,000 in projected expenditure savings for the 2024-25 fiscal year after a line-by-category review. The administration said savings included approximately $476,000 in personnel reductions, $254,000 in facilities utilities and supplies, $208,000 from transportation contracting, and other savings across technology and legal services. The administration now projects a $204,000 deficit for 2024-25, down from a larger shortfall earlier in the year, and projects no draw on fund balance for 2025-26.
The proposed 2025-26 revenue estimate shown to the board was about $125.1 million, an increase of roughly $4 million from the prior year's estimated final revenues. The administration described several drivers and adjustments: lower projected Social Security and retirement revenue driven by salary reductions, federal pass-through IDEA funds for special education recorded on the general ledger, and other federal allocations, including an estimated $644,000 for food service through the U.S. School Nutrition program.
The budget presentation included a proposed tax increase calculated at the Act 1 index plus approved special-education exceptions. Under the figures presented, a millage increase to the Act 1 index (4.7%) would add 0.0013771 mills and yield about $3.4 million in revenue; an approved special-education exception of 0.0002724 mills would add about $750,000. Combined, the presentation listed an increase of 0.0016495 mills, with projected additional revenue of about $4,159,000 and a projected new millage of 0.03095 mills for 2025-26.
Board members and administrators identified remaining risks, including PSERS (Pennsylvania Public School Employees' Retirement System) employer contribution rate increases, health insurance cost escalations, transportation and tuition contract increases, uncertainty in federal funding, and the county common level ratio's effect on property tax collections and refunds. The administration also noted opportunities if state funding for basic education or special education improves and said it will continue to pursue grants and use the district's multi-year financial projection to rebuild fund balance.
Mrs. Connolly, presenting the treasurer's report and budget slides, described the shift to a zero-based budgeting review and the months of collaborative work that produced the savings projections. Board members thanked staff and budget managers and reiterated that final certified real estate values and homestead/farmstead exemptions from the Pennsylvania Department of Education will be incorporated before the May final budget vote.
The board set a timeline: the proposed final budget will be posted for 30 days on the district website and made available in the central office; the board will consider adoption at its April 21 meeting and take a final vote on May 21.
Votes or formal adoption were not taken April 7; the presentation and recommended approvals were advanced for board consideration at the upcoming public meetings.
