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Allentown School District begins multi-month budget review as state budget nears release

Allentown School District Board of Directors (committee meetings) · January 23, 2026

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Summary

District finance staff outlined a preliminary look at the 2026–27 budget, saying roughly 67% of district revenue comes from the state and flagging personnel costs, charter tuition and debt service as the largest cost drivers. The superintendent said the governor's Feb. 3 budget will shape next steps.

Allentown School District finance staff opened the district's first formal discussion of the 2026–27 budget on Jan. 22, saying the presentation marks the start of a multi-month planning process ahead of the governor's budget release.

"Roughly 67% of our budget comes from state funding," the finance presenter said, and the district expects that state allocations will shape revenue assumptions for the coming year. He described the district's ACQUIN index at 5.4 (the statewide base is 3.5) as a measure that affects local taxing flexibility.

The presentation listed the district's total revenues and expenses for the current year at about $481,000,000 and noted state revenue of roughly $333,000,000. Major cost drivers identified included salaries and benefits (about 35% of expenditures), charter school tuition (currently about 19% of the operating budget), debt service and retirement contributions; a retirement rate (PEERS) was cited at about 33.59%.

Board members asked when residents would learn about possible tax changes; finance staff said preliminary budget approval and public notification would most likely come in May. A member asked whether the city's recent 4% tax increase affects district levies; the presenter responded that city and district revenues are managed separately and the city action has no direct effect on the school district's revenue streams.

District officials said the budget process will continue with school-level budget presentations, meetings with financial advisers, and public forums through April and May; the board will receive further information after the governor releases his budget Feb. 3.

The presentation was framed as an initial review rather than a set of decisions: staff said more detailed revenue estimates, collective bargaining evaluations and capital project cost projections will appear in subsequent meetings. The finance committee did not take a vote on policies or revenue changes during the Jan. 22 session.