Millcreek Township SD committee forwards proposed $128.7M 2026–27 budget and recommends 4.3% tax index

Millcreek Township SD finance and operations committee on April 13 forwarded a proposed final general fund budget for 2026–27 to the full board, recommending use of the 4.3% Act 1 index. Staff presented projected revenues of $127,618,898 and expenses of $128,678,619 and asked the board to set tax rates consistent with those figures. The committee voted to move the proposal to the board meeting at the end of the month.

District finance staff said roughly 66% of the district’s revenue is generated locally and emphasized the district’s increasing reliance on local property tax revenue. The administration proposed a tax rate of 17.461 mills, which staff said would be roughly the equivalent of $72 in annual tax for a $100,000 assessed-home value. The recommended tax change corresponds to the Act 1 index at 4.3%. "If we were to raise taxes to the Act 1 index just from 1920 to this current school year, it would generate roughly $8,300,000 in revenue," the presenter said, describing the comparison to other Northwestern Pennsylvania districts.

Staff reviewed drivers behind the budget gap, calling out enrollment and demographic shifts: special education enrollment has grown to about 21.3% of students and ELL/MLL students represent about 6.1% of the district population. The presentation showed the district has run deficits in recent years and projected a structural deficit of about $1.8 million next year, including approximately $1.0 million in capital expenditures. "We can't continue to function the way we are in operating deficits," staff said, urging approaches that could include revenue increases or expenditure reductions.

Board members pressed for options to reach structural balance. One board member said the district should not wait for the state to act and urged early steps on expenditure reductions if revenue cannot be raised. Staff replied that some increases—especially in health-care and long‑term substitute costs—are hard to predict and that balancing will require a mix of choices including, potentially, indexing taxes and reviewing expenditures.

The presentation also outlined a capital projects transfer tied to planned Chestnut Hill and stadium work and noted the district is accounting for debt issuance in future years. Staff said a final budget adoption is scheduled for 7 p.m. on May 26, 2026, at the Millcreek Education Center, 3740 West 26th Street, Erie.

The committee voted to forward the proposed final budget to the full board for final consideration and adoption on the May 26 meeting agenda.