North Allegheny presents proposed final budget for 2025–26; millage to remain at 19.74

North Allegheny School District finance staff presented the proposed final budget for fiscal year 2025–26 on April 9, showing $203.7 million in total revenue and $204.3 million in estimated expenditures — a projected deficit of about $578,000, or roughly 0.28% of the budget. The district proposes to hold the millage rate at 19.74, unchanged from the prior year.

Finance staff outlined key assumptions behind the proposal: an assessed‑value growth assumption of 1% (the district was at roughly 0.75% at the time of reporting), an estimated district assessed value of about $6.59 billion, and an average residential assessed value of about $254,000. The proposed budget anticipates an ending assigned and unassigned fund balance of approximately $28.3 million. Staff noted the state homestead/farmstead exclusion is not yet finalized and estimated it at about $218 per homestead for budgeting purposes.

Revenue and expenditure drivers

- Local revenue accounts for roughly 76% of projected funding; of that, property tax (millage) comprises about 62% of total revenue. - State funding is estimated at about 23–24% of revenues and covers basic education and reimbursement of PSERS/Social Security costs. - Federal funding represents about $3.1 million (roughly 1–1.5% of the total). - Salaries and benefits are the largest expenditure category, estimated at about 75.6% of total expenditures; debt and lease obligations account for about 9–10%.

Staff described the budget as the result of year‑round planning with principals and department leaders, and noted that the proposed final budget will be presented for board vote on April 23 (proposed final) with the final budget adoption scheduled for June 11, 2025; the final budget would take effect July 1, 2025, subject to statutory display and approval timelines.

Board questions and items discussed

Trustees asked about the items flagged in other agenda folders (notably proposed textbook adoptions) and whether textbook costs were included; staff confirmed textbook purchases were included in the supplies line, and three proposed textbook adoptions would be checked for timing and exact cost.

Board members also questioned the assessed‑value growth assumption and the potential impact of a countywide reassessment; finance staff said reassessment timing was unknown, that recent common level ratio changes have materially affected revenue estimates in prior years, and that a reassessment could materially increase assessed values closer to market values. Staff also told trustees that a roughly $300,000 shortfall in assessed growth (if the 1% assumption is not reached) would not be material to the district’s financial position and that the modest projected deficit would not likely affect the district’s bond rating.

Other points

Staff emphasized the limited flexibility in the budget: after salaries/benefits (≈75%) and debt (≈9–10%), about 15% of expenditures remain for supplies, utilities and other non‑personnel costs. The presentation noted a historical context that the district’s millage is lower than many comparable Allegheny County districts (about the fourth lowest among 41 comparables) and that holding the millage at 19.74 for an additional year would be a relatively rare multi‑year hold.

Next steps

The proposed final budget will remain on display according to state rules and return to the board for scheduled action on April 23 (proposed final) and for final adoption June 11, 2025; staff said updates will be made as county and debt‑refunding information becomes available.

Ending

Trustees praised the finance team’s forecasting and asked staff to continue monitoring assessed valuations and potential bond‑refunding savings that could offset revenue shortfalls.