The Altoona Area School Board voted 6-3 to approve a resolution advertising the district’s 2026-27 preliminary budget with a 3% tax increase Monday.

The board was presented with two budget options — either a 2% or a 3% tax increase — after rejecting a preliminary budget that raised taxes to the state’s Act I Index of 5.1% during a committee of the whole meeting Monday, April 27.

With the proposed 3% tax increase, the district’s millage rate would be set at 7.3003 mills, which would generate $444,340 in revenue for the district, according to business manager Sue Franks.

Tax on a property assessed at $108,000 would be $523.84, which Franks said represents a $15.26 change to a taxpayer who qualifies for the Homestead/Farmstead tax exclusion. Tax on a property of the same value with the exclusion would be $788.44, which represents a $22.96 change to the taxpayer, Franks said.

The district’s 2026-27 preliminary budget lists expenditures at slightly over $135.1 million.

With a 3% tax increase, the district’s total preliminary revenue would be about $129.3 million, leaving Altoona Area with a projected deficit of about $5.8 million.

A budget with a 2% tax increase would have set the district’s millage rate at 7.2295 mills, which would generate $444,340 for the district, according to Franks.

Tax on a property assessed at $108,000 with the Homestead/Farmstead exclusion would be $518.76, which is a change of $10.17 to the taxpayer, Franks said. Those who do not qualify for the exclusion would see a change of $15.31, she said.

Under a budget with a 2% increase, the total preliminary revenue would have been set at about $129.1 million, which would leave a deficit of about $6 million, according to data Franks presented to the board at the April 27 meeting.

During Monday’s meeting, the board voted to approve the 3% option, with members Kelly Irwin Adams, Stephanie McGinnis and Robert Pacifico voting against the proposed increase.

Board President Val Mignogna said he thinks Altoona Area will receive more state funding than what’s currently projected and asked Franks to develop a list showing the amount projected revenue versus the amount of actual revenue received from the local, state and federal levels over the last three years prior to the board’s June meeting, which is when the board will vote to adopt the final budget.

“I think we’ll end up receiving more than we expected this year, but we’re flying blind,” Mignogna said. “For me to ask taxpayers to pay more money, I have to know these things or I’ll probably be a no (vote).”

According to Franks’ presentation, the district budgeted to receive about $6 million from the state in Ready to Learn revenue for the next school year.

It’s possible the district could receive up to $13 million, which would leave a $7 million difference from what’s currently budgeted and leave the district with a $1 million surplus, Franks said.

Mignogna and board member David Francis said they’re not in favor of raising taxes, but they need to make a responsible decision before the state budget is approved.

Mignogna said he doesn’t think it’s fair that school boards have to decide whether to raise taxes without knowing beforehand what their state allocations will be. He said there are states that don’t require school boards to adopt a budget first and questioned why state legislators haven’t addressed the issue.

“They put us on the spot to make these decisions that impact the public and this community,” Mignogna said. “They have better information than us and they’re asking us to make these difficult decisions.”

Francis said he agrees with Mignogna about the process.

“It’s really hard for us to make a responsible decision, but we have to,” Francis said.

The preliminary budget will be on display for public inspection at the Altoona Area’s business office, 1201 Eighth Ave., from 7:30 to 11:30 a.m. and from 12:30 to 4 p.m. Monday through Friday. It can also be viewed online at www.aasdcat.com, according to Monday’s meeting agenda.

In other business, the board awarded a contract to John Hall Inc. for the junior high school’s boiler replacement project at a cost not to exceed $540,000, including any contingencies. The project will be funded through the district’s capital reserve fund.

Superintendent Brad Hatch said the junior high opened in 2008 and the boiler is reaching the end of its lifespan, noting boilers typically last about 20 years.

“It is nearing the end of life probably a little bit sooner than it should be, and because of that, we don’t want to be in a position to where we lose a boiler and are not able to heat our building,” Hatch said. “At this point, we are being proactive in that replacement.”

Hatch said the boiler is functional but “could literally stop working at any point.”

“So, in order to be proactive, making sure that we have reliable heat at our junior high school, we are recommending that replacement at this time so that that can be completed prior to the heating season in 2026-27,” Hatch said.

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