North Hills School District proposes 0.85‑mill tax increase to close $2.5 million budget gap

Mr. Muth, who presented the district’s proposed 2026–27 budget on April 30, told the board the district faced a persistent revenue shortfall driven by commercial real‑estate assessment appeals and rising mandated costs.

“What I’m proposing this evening is to raise taxes 0.85 mils up to 21.22 mils,” Mr. Muth said, explaining the increase would generate roughly the $2.5 million the district still needs after earlier reductions. He told trustees the change would amount to about $85 a year for every $100,000 of assessed value.

Mr. Muth reviewed steps already taken to close a larger initial gap, telling the board administrators and staff reduced salaries and benefits by about $1.3 million and trimmed discretionary spending by roughly $700,000, leaving an approximate $2.5 million shortfall. He said the district’s originally projected gap was about $4.5 million.

The presentation attributed the gap to several structural pressures: the growing cost of special education services, sizable contributions to the Pennsylvania Public School Employee Retirement System, required student transportation in areas without sidewalks, and ongoing tuition payments to cyber charter schools (Mr. Muth said the district still incurs more than $2 million annually for cyber charter tuition). He also said erosion of the commercial real‑estate tax base — including successful appeals — has permanently reduced local revenue.

Mr. Muth laid out specific household impacts: for every $100,000 of assessed value the tax would rise by about $85 annually; he gave the example of a West View Borough median assessment of $98,200 increasing tax by almost $84 and Ross Township’s median $134,600 increasing by about $114.41.

Mrs. Elwood presented the motion that the board approve the proposed final budget (PDE form 2028) with revenues and expenditures of $101,590,900, including the proposed 0.85‑mill increase; Mrs. Spade seconded and the motion carried. The board scheduled a final public vote on the 2026–27 general fund budget for its June 4 meeting and will make the proposed final budget available for public inspection for 30 days.

The budget presentation noted the district is exploring other revenue options but said most revenue is local, and 82% of local tax revenue comes from real‑estate taxes. Mr. Muth also described debt service, grants, and the major expense categories: salaries and benefits (about 72% of the budget), transportation, tuition, and facilities costs.

Next steps: the proposed final budget is available for public inspection and the board will consider final adoption at the June 4 public meeting.