Mount Lebanon board reviews preliminary 2026–27 budget, schedules Act 1 opt-out vote
January 13, 2026 | Mt Lebanon SD, School Districts, Pennsylvania
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Administrators told the Mount Lebanon School District Board at its Jan. 12 meeting that the district’s preliminary 2026–27 budget shows a projected revenue shortfall of $4,238,385 if millage remains flat.
The presenter explained that Pennsylvania’s Act 1 of 2006 sets an annual inflation-based limit on property tax increases and that Mount Lebanon’s adjusted Act 1 index for 2026–27 is 4.1%. The district’s current millage is 30.95; applying the full 4.1% index would raise the millage to 32.2189 and increase real-estate revenue from $80,404,540 to $82,785,375, a $2,380,835 gain, the presenter said.
Why it matters: salaries, benefits and bond payments account for the vast majority of district expenditures, leaving roughly 15.1% for curriculum, technology, facilities, transportation and other commitments, the presentation showed. Administrators said preliminary worst-case expenditures total $130,976,761 under current assumptions—including a 3.5% salary increase and a 10% rise in health-insurance costs—leaving a gap between revenue and expenses if taxes are not increased.
Board members asked about the assumptions behind special-education and transportation projections. The presenter said those figures were based on recent history and input from partners including private schools and the Allegheny Intermediate Unit. The presenter also noted that teacher retirements and resignations—with a Feb. 1 deadline to declare retirements—will be analyzed in staffing meetings and are expected to affect final expense totals.
Next steps: administrators said they will produce a base budget in March, hold a public budget forum on April 6, present a proposed final budget on April 13, and vote on a final budget on May 18. The board was told an opt-out resolution required by Act 1 is on the agenda for a Jan. 26 vote; by passing that resolution the board would certify it will not raise taxes by more than the adjusted Act 1 index of 4.1%.
The presentation also noted other finance items for future board action, including the 2024–25 Annual Comprehensive Financial Report and routine bills, refunds and transfers.
The presenter explained that Pennsylvania’s Act 1 of 2006 sets an annual inflation-based limit on property tax increases and that Mount Lebanon’s adjusted Act 1 index for 2026–27 is 4.1%. The district’s current millage is 30.95; applying the full 4.1% index would raise the millage to 32.2189 and increase real-estate revenue from $80,404,540 to $82,785,375, a $2,380,835 gain, the presenter said.
Why it matters: salaries, benefits and bond payments account for the vast majority of district expenditures, leaving roughly 15.1% for curriculum, technology, facilities, transportation and other commitments, the presentation showed. Administrators said preliminary worst-case expenditures total $130,976,761 under current assumptions—including a 3.5% salary increase and a 10% rise in health-insurance costs—leaving a gap between revenue and expenses if taxes are not increased.
Board members asked about the assumptions behind special-education and transportation projections. The presenter said those figures were based on recent history and input from partners including private schools and the Allegheny Intermediate Unit. The presenter also noted that teacher retirements and resignations—with a Feb. 1 deadline to declare retirements—will be analyzed in staffing meetings and are expected to affect final expense totals.
Next steps: administrators said they will produce a base budget in March, hold a public budget forum on April 6, present a proposed final budget on April 13, and vote on a final budget on May 18. The board was told an opt-out resolution required by Act 1 is on the agenda for a Jan. 26 vote; by passing that resolution the board would certify it will not raise taxes by more than the adjusted Act 1 index of 4.1%.
The presentation also noted other finance items for future board action, including the 2024–25 Annual Comprehensive Financial Report and routine bills, refunds and transfers.
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