New Kensington-Arnold School District property owners are looking at a nearly 2% property tax hike in the district’s proposed budget for 2026-27.
The move would bring in about $220,000 more for the district. Expenditures for next school year are estimated at nearly $50.4 million.
“The proposed budget does include the tax increase, but those additional resources are to be invested directly back into students,” school board President Jane Graham said.
The increase would bring the district’s millage rate to 104.14, up from 102.14.
One mill is equal to $125,840 for the district, Business Manager Jeffrey McVey said.
The district’s revenue increased from last year, creating an estimated $203,990 surplus.
“There’s no major renovations that are budgeted,” McVey said. “The district at the current time is discussing how we might use some of the surplus we’re looking at for next year.”
He said extra money likely will go toward new curriculum.
The district wants to update its seventh to 12th grade English language arts and math curriculums and K-12 social studies and science curriculums next school year, McVey said.
He said there will be a better understanding soon of curriculum costs once bids are finalized in the coming weeks and will be discussed at a finance committee meeting soon.
The meeting date will be posted on the school website once it’s decided, McVey said.
This year, the district updated its K-6 English language arts and math curriculum.
Costs
Personnel remains the biggest expense for the district.
The proposed budget projects the district will spend about $31.7 million on salaries and benefits, McVey said.
“Salary and wages go up every year,” McVey said. “There are contract obligations the district has to meet.”
Costs for special education, especially for programs not in district buildings, continue to rise too, he said.
Adding to the district’s financial woes is a $913,000 decrease in assessed property value, which in turn decreases revenue. McVey said the assessed value changes every year.
The median assessed value of a homestead property in the district is $14,725.
Savings
Some of the projected savings for next year come from bond repayment, including an $840,000 bond the district paid off this year, McVey said.
“When there’s a savings like that, it just covers the increase in expenditures. It gets absorbed into expenditures budget,” McVey said.
The budget projects that in 2027 the district will have about $20.8 million in bonds, down from the 2026 estimate of $23.2 million.
Graham said the district has been trying to make “smart” choices over the past few years on how it spends money and applies for grant funding to avoid future deficits.
“We’re trying to make sure we can invest in our students and our families and community,” Graham said.
About the proposed tax hike
What the tax increase would mean for a home assessed at the district’s mean of $14,725:
Current tax rate: 102.14
Current tax bill: $1,504
Proposed tax rate: 104.14
Proposed tax bill: $1,533
Tax increase: $29