A near-maximum property tax increase is included in North Hills School District’s proposed $101.6 million budget for the 2026-27 school year.
As proposed, the district’s property tax rate would increase by about 4.17%, or 0.85 mills, from 20.37 to 21.22 mills.
That’s just under the district’s state-imposed inflation limit of 4.2%.
For a home in Ross at the median assessed value of $134,600, the annual school district tax bill would increase by about $114, from about $2,742 to $2,856.
In West View, where the median assessed value is $98,200, the school district tax bill would increase by about $83, from about $2,000 to $2,084.
“This budget reflects a thoughtful and deliberate effort to balance fiscal responsibility with our commitment to providing high-quality educational opportunities for all students while addressing rising mandated costs,” district finance Director Jerry Muth said.
According to Muth’s presentation, the budget began with a $4.5 million deficit, spending about $103.7 million on revenues of $99.1 million.
The deficit was reduced to about $2.5 million by cutting salaries and benefits by $1.3 million without furloughs, and reducing discretionary spending by $700,000 without program cuts or increasing class sizes.
The proposed tax increase would generate about $2.5 million, covering the remaining deficit, according to Muth.
At $101.6 million, the district’s spending would increase by 1.5% over the current school year.
Without a property tax increase for the current school year, a $2.8 million deficit was covered by resources no longer available, including the use of remaining federal covid relief funds, savings from unfilled support positions, the sale of aging iPads and a manufacturing grant, according to the district.
Real estate taxes make up the majority of the local taxes that the district relies upon. The district says the continued erosion of the commercial real estate tax base is largely to blame for a 1% decrease in its overall revenue.
“This trend means business properties are contributing less tax revenue than in the past, driven by reduced demand for office and retail space, along with property reassessments and appeals that have lowered assessed values,” the district said in a release. “As a result, the district is experiencing slower revenue growth and increased reliance on residential taxes to fund operations, a shift that is largely outside of its control but directly impacts budget planning.”
“This budget was challenging due to continued financial pressure from unfunded federal and state mandates and the ongoing reduction in the commercial real estate tax base due to reassessments — factors not within the district’s control,” said board member Samantha Ellwood, chair of the finance and operations committee. “I commend the team for working to minimize the increase in expenses to just 1.5 percent while ensuring we continue quality education and programs for students and maintain the incredible staff in our schools.”
The proposed final budget is available for public inspection at the district’s administration building, 135 Sixth Ave. in Ross, from 8 a.m. to 3:30 p.m. weekdays. It can also be viewed online.
The budget will be discussed at a finance and operations committee meeting at 6 p.m. May 13 in the North Hills Middle School LGI room. The board will vote on the final budget when it meets on June 4.