The Allegheny Valley School Board moved forward on a tax hike of around 2% on Tuesday ahead of a formal vote next week.
The revenue generated from the millage increase would go toward a projected $3.6 million budget deficit, though the majority of that deficit would be made up using the district’s fund balance.
Though the board opted for a budget with a millage increase around 0.50-mill more than the current rate of 21.3899, board President Nino Pollino said the final number will likely be slightly lower than that.
In the case of a millage increase of 0.45-mill, a taxpayer who owns a property with the average assessed value of $85,900 would pay $1,876 in school taxes, an increase of $39.
Throughout the budget discussions, Hamsini Rajgopal, the district’s director of finance and business operations, and several board members bemoaned the lack of funding from state and federal sources.
Still, Rajgopal said she hoped the budget could provide a “beautiful harvest” for students next school year.
The proposed budget projects $7,866,841 in state funding, $627,086 less than the current budget. From the federal government, the proposed budget projects $335,000, down about $22,250 from the current budget.
With a 0.45-mill increase, the district could expect about $385,000 more in local funding compared to current local contribution of $17,648,629.
Total expenditures amount to a projected $28,619,542, about $3 million more than the current budget.
Like most school district budgets, the vast majority of the projected expenditures will go toward employee salaries and benefits in addition to debt servicing.
Though the district would fill in its deficit with its $22,426,066 fund balance, Pollino said Allegheny Valley would remain financially stable. He said last year’s 2.65% tax hike and the proposed increase this year will hopefully avert another increase in the 2026-27 school year.
The board, he said, is always searching for the “best return on investment” in its students, leaving the door open for future program cuts or investments in different educational areas.
“If we want to maintain the quality of education we have today, we need a millage increase,” Director Larry Pollick said. “And it’s something we hated to do in the past, we hate to do it today, but to do what we must for our students is the responsible thing to do.”
Director Amy Sarno sought to keep a flat millage rate because of “economic hardship” in the district.
The discussions, however, were “productive,” and she said she would defer to the will of the rest of the board.
“I do respect the idea of a tax increase, and I understand the reason,” Sarno said.
The board will vote on a preliminary final budget at its May 13 meeting. A vote to approve a final budget for the 2025-26 school year will take place in June.