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North Allegheny administration recommends 3.5% tax increase in proposed final budget
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Summary
District officials presented a proposed final budget that includes a recommended 3.5% millage increase to address inflation, a tighter common level ratio, and staffing costs; the budget will be on display before a final vote May 20, 2026.
The North Allegheny School District administration on April 15 recommended a 3.5% tax increase in its proposed final budget to address inflationary pressures, changes in the common level ratio and the need to remain competitive in staffing.
"No one welcomes a tax increase," Superintendent Dr. Hyland said, adding that the recommendation is the result of "thoughtful, deliberate planning" in light of ongoing cost pressures. Finance director Kermit Hauser walked the board through the numbers, saying the 3.5% increase equals about 0.69 mills and would generate roughly $4.5 million in additional revenue.
Hauser provided a breakdown of the estimated homeowner impact: the increase would add about $69 annually for every $100,000 in assessed value; with an average residential assessment of approximately $254,000, the typical annual effect was described as about $176 (roughly $15 per month). He said an estimated homestead/farmstead exclusion of about $240 is included as an estimate pending final state numbers.
Hauser told the board the fund-balance picture tightened since November: a projected deficit after transfers of about $366,000 (down from a November-estimated $750,000) but an expected ending fund balance of roughly $28.1 million, or about 13.3% of the budget. The administration also outlined an initial $10 million bond offering to help fund planned construction.
Board members asked whether drawing on reserves could avoid a tax increase. Hauser and others said maintaining roughly 1.6 months of operating cash in the fund balance protects cash flow (the district receives the bulk of revenues in September) and helps preserve the district's AA stable credit rating, which lowers borrowing costs. "Keeping that fund balance in... actually lowers your debt cost," Hauser said.
Hauser said the proposed final budget will be placed on public display for at least 20 days; the administration expects to bring the final budget to a board vote on May 20, 2026. He also noted links to tax-relief programs (homestead exclusion, senior tax relief and property tax rebate) will be provided on the district website for eligible taxpayers.
The presentation drew extended discussion about long-term fiscal options, including suggestions from board members to explore philanthropic or legacy-fund approaches alongside prudent debt management. The board did not adopt the budget at the April 15 meeting; the administration said it would update the proposal if material new information emerges before the May vote.
