TYRONE — Faced with a deficit of about $1.2 million, the Tyrone Area School District’s 2026-27 preliminary budget calls for a 4.9% increase to the state Act 1 Index, business administrator Faith Swanson said while presenting the budget to the school board Tuesday.

By raising taxes to the index, Swanson said the district would generate about $491,000 in revenue, meaning the district’s deficit would be about $740,000.

During her presentation, Swanson said investments made in education by the state legislature over the past five years are not sustainable long term, and future increases to both basic education funding and special education funding are expected to be minimal.

Of the $50 million investment in basic education funding proposed in Gov. Josh Shapiro’s budget, which Swanson said is the smallest increase in basic education funding statewide in over 10 years, Tyrone Area would only receive an increase of about $30,000. The district would receive an increase of $8,616 in special education funding, she said.

The revenue generated from raising taxes will help the district make up some of the difference in the future, Swanson said.

“The district is in good fiscal shape. We just want to maintain that,” she said.

Estimated revenue in the preliminary budget is set at about $31.2 million, and estimated expenditures are expected to be about $31.9 million, according to Swanson, who noted additional cuts will be made to the budget over the next month.

As of July 1, the district’s general fund balance was about $9.4 million, Swanson said, adding the ending balance for June 30, 2027, is estimated to be roughly $8.7 million.

Since Tyrone Area is a multi-county district, tax levies in Blair, Centre and Huntingdon counties are different based on a property with an assessed value of $100,000, according to Swanson.

In Blair County, the tax millage rate would increase from 8.18 mills to 8.27 mills, representing a $7.72 change over the 2025-26 budget. Tax on a $100,000 property would be $709.57, while those who qualify for the Homestead/Farmstead exclusion would pay about $431.76, Swanson said.

In Centre County, the tax millage rate would increase from 31.16 mills to 31.83 mills, representing a $2.13 change over the 2025-26 budget. Tax on a $100,000 property would be $544.29, while those who qualify for the Homestead/Farmstead exclusion would pay about $266.48, according to Swanson’s presentation.

With tax rebalancing, Huntingdon County is the only county to actually hit the Act 1 Index, Swanson said during the meeting.

In Huntingdon County, the tax millage rate would increase from 54.39 mills to 62.15 mills, representing a $36.41 change over the 2025-26 budget. Tax on a $100,000 property would be $781.85, while those who qualify for the Homestead/Farmstead exclusion would pay about $504.04, Swanson said.

The preliminary 2026-27 budget is tentatively scheduled to be adopted at next Tuesday’s regular session meeting, though district officials have until May 31 to pass a preliminary budget.

The tentative budget will be advertised within 10 days of board action, Swanson said, adding the budget must be on public display for 20 days prior to a final budget being adopted.

Tyrone Area plans to adopt the final 2026-27 general fund budget at the June 9 school board meeting, though district officials have until the state’s June 30 deadline to approve the budget.

Swanson said the state budget is not likely to be passed prior to June 30, though officials don’t anticipate a prolonged budget impasse like last year, she added.

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