Mount Lebanon board presented 2026–27 base budget with $1.17M preliminary shortfall; furlough authorization described as procedural safeguard

Miss Connolly presented the Mount Lebanon School District’s preliminary 2026–27 base budget on March 16, saying projected revenues are about $128.08 million against preliminary expenses that create a shortfall of approximately $1,169,901.

The presentation laid out revenue assumptions: local revenue of about $98,500,000 (roughly 76.5 percent of the base budget), projected state revenue of about $29,700,000, and federal funding near $560,000. Miss Connolly said local real-estate taxes remain the largest source and that the district used a 4.1% Act 1 index in its calculations. She also described a 0-based approach to departmental budgeting and listed major expense drivers, including salary and benefits (personnel $58.4 million; benefits $39.5 million), bond payments and capital projects.

Superintendent Doctor Fries and Miss Connolly emphasized that authorizing furloughs is a legal, procedural step required by the Pennsylvania Department of Education timeline and not an intent to immediately implement staff reductions. "This vote is required, by law," Miss Connolly said, adding administrators do not intend to use furloughs if other balancing measures suffice. Fries reiterated that the district has previously authorized furloughs without using them.

Board members asked several clarifying questions. One member asked whether staffing adjustments already reflect retirements; Miss Connolly said the staffing review had begun and that the presentation accounted for 14 retirements while assuming replacements at lower step/salary levels. On the fund balance, the administration said the district is targeting an unassigned fund-balance goal of 8 percent; current unassigned funds were reported at about 5.99 percent. Miss Connolly explained the 8 percent goal is intended to support credit ratings and borrowing position.

The presentation also addressed recent real-estate assessment volatility. Miss Connolly said a lower common level ratio (CLR) in Allegheny County has driven more tax appeals and refunds, lowering assessed values and reducing projected real-estate revenue. She noted the district has budgeted for prior-year refunds (about $300,000) and is awaiting final collection figures from Mount Lebanon Township to finalize real-estate revenue estimates.

The administration outlined strategies to close the gap, including reassigning staff through attrition, targeted program modifications, delaying equipment replacement and reviewing contractual costs. Miss Connolly said further budget forums and board votes are scheduled: a budget forum and discussion on April 6, a board vote on April 13, and final budget adoption on May 18.

What happens next: the board and administration will continue internal staffing and budget reviews over the next month; the board will be asked to consider a procedural authorization on furloughs to preserve options if revenue projections do not improve.