By a split 5-4 vote, the Altoona Area School Board adopted the final 2026-27 general fund budget with a 3% tax increase Monday, with board President Val Mignogna, Vice President Kelly Irwin Adams, Bob Pacifico and Stephanie McGinnis opposed.

The budget’s revenues are listed at about $129.3 million, while expenditures total slightly more than $135.1 million, leaving the district with a deficit of about $5.78 million.

With the 3% tax increase, the district’s millage rate is now set at 7.3003 mills. The increase will generate about $666,509 in revenue for the district, according to business manager Sue Franks, who said the district has a fund balance of about $32.6 million to cover the shortfall.

In a previous budget presentation to the board, Franks said tax on a property assessed at $108,000 would be $523.84, which represents a $15.26 change to a taxpayer who qualifies for the Homestead/Farmstead tax relief exclusion. Tax on a property of the same value without the exclusion would be $788.44, which represents a $22.96 change to the taxpayer, Franks said.

Mignogna said he scoured the Pennsylvania Department of Education’s website and noted he found only one other school district in the commonwealth with a lower tax rate than Altoona Area — the Midland Borough School District.

However, over the last five school years, the district has received an average of about $2 million more than what was budgeted for in state allocations, Mignogna said, noting the board is at a disadvantage because of the way the state government operates.

The state requires school boards to adopt a final budget prior to June 30 before the governor’s budget is approved and officials know what their state revenue figures will be, Mignogna said.

“Because of the way this process works, we don’t know (what we’re going to receive in state revenue). We’re flying blind,” Mignogna said.

While Mignogna couldn’t personally support a tax increase, given the district’s history of receiving more state funds than expected, he commended Franks and her team for being good stewards of the community’s money.

“You guys do a tremendous job and manage the budget very well. We’re at a disadvantage because of the way the state government operates,” Mignogna said.

McGinnis also commended Superintendent Brad Hatch and the district’s administrative leadership for being “very selfless” and ensuring the district’s spending is lean.

McGinnis said she’d never want the district’s students and teachers to go without, but knowing what community members and business owners already pay in taxes was why she decided to vote against the 3% increase.

“I do think you’d be hard-pressed to find an administration that is as selfless as far as making sure the needs of the kids and the faculty comes before what they’re looking at,” McGinnis said of Altoona Area’s administrators.

Like Mignogna, board member David Francis also voiced frustration with the way the state government operates, calling the board’s situation an unfair “guessing game.”

The board was faced with a decision to either raise taxes this year out of uncertainty or be forced to raise taxes next year for reimbursement, Francis said.

“If we don’t go with an increase and don’t get the funding, then we’re in trouble next year. If we do get the increase, then we shouldn’t be raising taxes next year,” Francis said.

“It is unfair to (school) boards the way the state is handling it,” he added. “It’s just a guessing game, so that’s the bad part of the job.”

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