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Colonial School District accepts $4.76M in state relief as finance committee recommends 3.5% tax increase
Summary
At its May 2026 meeting the Colonial School District Board accepted $4,758,664.23 in property-tax relief and a finance committee representative said the committee recommends a 3.5% real-estate tax increase to close a projected $3.9 million deficit; a final vote is scheduled for June.
The Colonial School District Board at its May 2026 meeting voted to accept $4,758,664.23 in property-tax relief under Act 1 of 2006 and heard a finance committee recommendation for a 3.5% real-estate tax increase to offset a projected $3.9 million budget shortfall.
The finance committee reported that the district will establish a 2026 exclusion of $17,051 from each eligible homestead and farmstead assessment, producing a maximum tax-reduction amount of $467.57 per eligible property. The committee said half of the relief funds will be received in August 2026 and the remainder in October 2026. The board put the acceptance motion and announced approval on the floor.
The finance committee report — presented to the board as part of committee reports — included the proposed final budget, which the committee said is available for inspection on the district website or from the business office. The committee representative said the recommended 3.5% real-estate tax increase is designed to offset the district’s projected $3,900,000 deficit and that the proposed final budget will be voted on at the June board meeting.
The board also approved a real-estate tax installment payment plan resolution to provide taxpayers with an installment option and approved a slate of banking and investment institutions for the 2026–27 fiscal year. Specific vote tallies were not recorded in the public proceedings; the chair called each motion, asked for a second and announced approval.
Why it matters: The combination of state Act 1 relief and a local proposed tax increase are the board’s current responses to a multi-million-dollar projected shortfall. The acceptance of relief funds reduces immediate revenue pressure, but the finance committee’s recommendation sets up a budget decision voters and taxpayers will notice when the board takes the final budget vote in June.
What’s next: The board plans a final budget vote at the June meeting. The finance committee indicated the proposed 3.5% tax increase will be part of that final decision.
