Cornwall‑Lebanon presents 2026–27 proposed budget requiring 3.9% tax increase to close $2.6M gap

Cornwall‑Lebanon School District officials told the board May 11 that the district’s proposed final 2026–27 general fund budget would require roughly $2.6 million in additional revenue — a 3.9% tax increase — to balance expenditures. "To stay in line with the Act 1 timeline, we do have to have a proposed final approved this month," the district business officer said as she reviewed the package of projections and pressures.

The administration reported estimated total expenditures of about $119.6 million and said the budget gap is driven largely by personnel costs, mandated pension contributions and rising health‑care costs. Major line‑item drivers the administration highlighted include an estimated $4.2 million increase for salaries and benefits, roughly $756,500 to add special‑education classrooms and supports, about $1.2–1.3 million for employee health care increases, and transportation contract increases projected at $483,000. Officials also flagged cyber‑charter tuition increases (an estimated $375,000 impact) and other nonpersonnel increases.

The administration presented a millage estimate of 19.96; staff said a median homeowner with an assessed value of $173,800 would see about a $130 annual increase at a 3.9% levy change. The district also summarized its state property‑tax relief allocation (Act 1/related funding) and said Cornwall‑Lebanon’s allocation of about $2.2 million yields an estimated homestead reduction described in the presentation.

Board members and administration framed the budget in the context of statewide and structural pressures. The presentation noted that the state pension employer contribution rate (PSERS) was certified at 33.59% and has risen significantly over the past decade, creating continuing pressure on local budgets. "This is one of our mandated expenditures in our personnel expenses," an administrator said when describing pension reimbursement timing.

Administration recommended approving the proposed final budget at next week’s meeting so staff can continue refining numbers before the public work session and final adoption. No vote was taken at the May 11 work session.

Next steps: the board will be asked to approve the proposed final at the May 18 meeting; staff said they will further refine personnel and benefit estimates in the intervening weeks.