Fox Chapel board approves 2.3% tax increase in proposed 2025–26 budget after detailed review

The Fox Chapel Area School District board on Tuesday approved a proposed final general fund operating budget for fiscal 2025–26 that includes a 2.3% increase in current real estate taxes.

District finance presenter Kim Polaschak presented the budget figures during the meeting, saying the proposed final budget reflects updated certified assessed values received May 2 and revisions to personnel costs. The proposed budget lists revenues of $120,709,693 and total budgeted expenditures (including a $1.5 million budgetary reserve) of $123,187,421, leaving a planned net draw on fund balance; the administration said available fund balances would cover the shortfall while leaving an unassigned ending balance near the board’s 5–8% policy target.

The 2.3% recommended tax increase (0.4948 mills) was presented as the administration’s response to a 0.37% decline in taxable assessments that reduced revenue by more than $250,000. Polaschak said the district also received a larger state property tax relief allocation for the coming year — about $2,552,187 — which raises the homestead exclusion benefit for eligible homeowners.

Board members questioned details of the homestead/farmstead exemption and how the millage change would affect individual taxpayers. Polaschak and other district staff said the homestead exemption reduces the assessed value used to compute school taxes for qualifying primary residences, that 7,843 properties were approved as homestead exempt this year (an increase of 17 from 2024–25), and that the homestead reduction in the proposed budget translates to an approximate $326.17 reduction on the tax bill for an average homestead-exempt homeowner when the exemption is applied. The administration said properties with assessed value at or below $70,000 and with a homestead exemption could see a net decrease in their tax bill compared with 2024–25; otherwise homestead properties would experience an increase smaller than the 2.3% millage rise.

Board members and the administration discussed other pressure points in the budget, including the employer contribution to the Pennsylvania School Employees’ Retirement System (PSERS), which Polaschak said will be 34% of the PSERS-covered payroll in 2025–26 (an increase of 0.1 percentage points from the current year) and projected to rise in coming years. Polaschak also said projected increases in special education enrollment and some personnel adjustments accounted for the modest $192,000 rise in expenditures since the committee presentation in April.

Board Treasurer Eric G. Hamilton, who moved the resolution to approve the proposed final budget, said the recommended increase is below the Act 1 index maximum and below recent inflation measures, and he and other board members stressed that administration has worked to keep expenditure growth restrained. Several trustees emphasized the district’s low debt ratio and ongoing capital investment and said the board has reviewed a range of options before recommending a millage increase.

Votes at a glance - Proposed final general fund operating budget for 2025–26 (Item 6 on the agenda): Moved by Eric G. Hamilton; second not specified in the record. Roll call: Frank — yes; Good — yes; Hamilton — yes; Hasselcorn — yes; Lynch — yes; Zich — yes; Cooper — yes; Dad — yes; Finley — yes. Outcome: approved (9–0). Referenced materials: proposed final budget document on the board agenda. - Finance and routine items (disbursements, capital reserve disbursements, finance report acknowledgement, budget transfers, student activities report): approved on roll call as part of consent/finance items. (Roll call recorded as unanimous.) - Facilities awards: Plumbing construction contract for high school domestic water line and service replacement (Bridal Plumbing Company, base bid $258,200; alternate $800; total $259,000) and an architectural agreement with McKinley Architecture and Engineering ($73,300) were approved. Motion moved and seconded; roll call recorded as unanimous. - Policies and governance: Multiple policy revisions and a new policy on the use of generative AI (Policy 815.2) were approved at second reading; roll call recorded as unanimous on most policies. Policy 222 (tobacco and vaping products) passed 8–1 (Ms. Zich cast the lone recorded no vote). - Personnel and instruction contracts, agreements, and routine approvals (including services renewals with the Allegheny Intermediate Unit and a day school for special education placements): approved on roll call. - Operations items (summer camp approvals, USGA parking addendum at O’Hara Elementary, lease for Jewish Community Center event): approved on roll call.

What the budget means and next steps Approval of the proposed final budget starts a timetable of public posting and advertisement required by the Pennsylvania Department of Education. The district will post the proposed final budget for public inspection (a minimum of 20 days before adoption), advertise the board’s intent to adopt a final budget at least 10 days before adoption, and return to the board in June to adopt the final budget and to pass the homestead/farmstead exemption resolution.

Clarifying details - Proposed final budget revenues: $120,709,693 (78% local, 20% state, <1% federal/other). Expenditures reported with budgetary reserve: $123,187,421. Net planned draw on fund balance: $2,477,728. - Homestead/farmstead exemption: 7,843 properties approved for 2025–26 (an increase of 17 over 2024–25); homestead relief allocation for district: ~$2,552,187. - PSERS employer contribution: 34% in 2025–26 (roughly a 0.10 percentage-point increase over the current year), with projections rising over the next five years.

Why it matters The board’s approval of the proposed final budget and 2.3% millage recommendation frames the district’s spending and capital priorities for the coming year and begins the legally required public-notice process before final adoption. The action affects local property taxpayers, the district’s fund balance and capital planning, and the resources available for personnel, special education services and facility projects.

Ending note The board and administration said they will continue presenting detailed budget materials and public information before the June adoption vote so residents can review the proposed final budget and the homestead exemption calculation.