The Mt. Lebanon School Board on April 13 approved a preliminary plan to raise property taxes by 3.5% for the 2026-27 school year, a move aimed at closing a projected $1.2 million budget shortfall while maintaining current staffing levels.
A final vote on the budget is scheduled for May 18.
The shortfall was first discussed during the board’s March meeting, when directors also unanimously approved a resolution allowing for a potential reduction in professional staff if necessary. It marked the third consecutive year the board has passed such a resolution, though district officials said it has not resulted
in furloughs.
With the proposed tax increase, no employees are expected to be furloughed if the budget is approved.
The 3.5% increase is below the 4.1% limit set by the state’s Act 1 index, which caps how much Pennsylvania school districts can raise property taxes annually without voter approval. By staying under the index, the district avoids the need for a referendum.
The increase represents a millage rate rise of 1.083 mills, bringing the total rate to 32.033 mills for the 2026-27 fiscal year. District officials estimate the increase will generate approximately $2.9 million in additional revenue.
The district also outlined its projected revenue sources for the 2026-27 school year, with local revenue making up the largest share. Local sources are expected to generate $98,901,208, or 76.54% of total revenue. These funds are driven primarily by real estate taxes governed by the Act 1 index, along with other local taxes, pass-through funds and fees associated with school programs and operations.
State funding is projected at $29,755,550, or 23.03% of total revenue. This includes subsidies and grants aligned with the governor’s proposed budget and approved by the state Legislature, primarily through the Pennsylvania Department of Education and other state agencies.
Federal revenue is expected to total $560,168, a small portion of the overall budget, and comes primarily from grants supporting at-risk and underserved students through Title programs and Medicaid funding.
School officials said the combination of local, state and federal funding is necessary to support district operations, including salaries, benefits and academic programming.
Board members said the annual staffing resolution is a precautionary measure required when addressing potential financial uncertainty. In practice, the district has consistently balanced its budget without reducing staff.
Residents will have an opportunity to review the proposed budget before the final vote. If approved May 18, the tax increase will take effect for the 2026-27 fiscal year.
