The Altoona Area School Board will consider two proposed budgets — both with a tax increase — in a couple weeks when officials vote to approve the district’s 2026-27 preliminary budget at the May 11 board meeting.

During a committee of the whole meeting Monday, the board reviewed a proposed budget that included a tax increase to the state’s Act I Index of 5.1%. Under that plan, the district would bring in about $1.1 million in additional local revenue but would still face a deficit of about $4.9 million, according to business manager Sue Franks.

With a proposed budget that includes a maximum tax increase, the district’s preliminary revenue would be about $130.1 million, with expenditures budgeted conservatively at about $135 million, Franks said.

Board member David Francis said it’s “pretty hard to justify” a full tax increase after Franks noted the district has a fund balance of just over $40 million.

However, because expenses are projected to increase over time, it would be “irresponsible” to not consider a tax increase, Francis said.

A five-year timeline of the district’s expenditures showed many expenditures — wages, medical, utilities and outside tuition costs — increased a total of about $14 million since the 2022-23 school year. Franks noted district officials “have little control over” many of those expenses.

“Personally, I’d like to see no tax increase,” Francis said, adding the board should consider compromising in the middle with a proposed tax increase of 2% to 3%.

After some discussion, the board ultimately chose to consider both of those options for the district’s 2026-27 preliminary budget in May.

Based on information Franks presented Monday, a 2% tax increase would generate about $444,340 in additional revenue for the district. Based on the district’s median property assessment of $108,000, the change to a taxpayer’s bill would be about $5.09 with the Homestead-Farmstead exclusion and $7.65 without the exclusion.

A 3% tax increase would generate about $666,509 in additional revenue, according to Franks’ data. Based on the same median assessment, the change to a taxpayer would be about $15.26 with the Homestead-Farmstead exclusion and $22.96 without the exclusion.

State funds could help

The district is primarily funded by state revenue, which is projected to make up 67% of the budget, Franks said.

If the district receives the full amount of Ready to Learn funding proposed in Gov. Josh Shapiro’s state budget, the district could potentially receive enough state funding to cover the projected shortfall, she said.

Franks budgeted about $2 million in state adequacy revenue for the 2026-27 fiscal year, which is “very conservative” because the district received about $4 million in adequacy money this year, she said, adding there’s no guarantee the district will continue to receive those funds going into next school year.

“I budgeted a little over $6 million in Ready to Learn funds. That number could go anywhere between ($9 million and $13 million), depending on what happens with the state budget,” Franks said.

Superintendent Brad Hatch said the district’s projections of state revenue are based on numbers district officials receive from the state, and until an actual state budget is adopted, they won’t know what their base funding will be.

Board President Val Mignogna said that puts the board in a tight spot.

“They put us in an awkward position to make these decisions when times are kind of tough,” Mignogna said.

After the board puts forth a preliminary budget with either a 2% or 3% tax increase, it will sit for public review for a month, Hatch said, noting the actual vote to decide whether or not the board needs to raise taxes won’t be made until June.

At that point, district officials hope to have more accurate information in terms of what Altoona Area’s expected state allocation is, Hatch said.

Special meeting

Prior to the committee of the whole meeting, the board held a special meeting and voted on two items.

With all members present, the board unanimously voted to approve the district’s 2026-29 special education plan, which needs to be submitted to the state for consideration by May 1, Hatch said.

The board also voted to approve a change order for a window replacement project at Logan Elementary. The change order allows J.C. Orr and Son to upgrade 726 square feet of glass with insulated glass at a cost of $14,835.

District officials noted the cost is within the contingency amount approved by the board in November 2025.

Mirror Staff Writer Matt Churella is at 814-946-7520.