The Altoona Area School Board approved the 2025-26 preliminary general fund budget Monday with a proposed 3% increase in real estate property taxes. However, a tax increase seems unlikely to be approved next month when the final budget is adopted.

Board President Val Mignogna, Vice President Kelly Irwin Adams, David Francis and Mike Pappas – nearly half of the board’s nine members – all stated their opposition to raising real estate taxes by any rate during the meeting. Members Chris Cook, Justin McCaulley and Stephanie McGinnis didn’t publicly express their opinion on the proposed tax increase. Board members Bob Pacifico and John Romanowicz were not present.

According to business manager Sue Franks, raising the district’s tax millage rate, 7.0877 mills, by 3% to 7.3003 mills would generate an additional $675,219 in real estate tax revenue.

If the final budget is adopted with the proposed 3% increase, real estate property taxes for the median homeowner with an average property value of $108,000 would increase $3.98 under the Homestead/Farmstead exclusion, Franks said.

That increase is lower than the amount proposed last month under a 3% increase – $22.96 – because the state awarded the district a $303,426 increase in the Homestead/Farmstead allocation, Franks said.

The allocation, which increased from $2,781,086 to $3,084,512 this year, is also partially responsible for lowering the district’s projected deficit from $2.4 million to $1.7 million, Franks said, noting the 3% tax increase is figured into the $1.7 million figure.

That means, if the board doesn’t approve a tax increase in June, the district will need to pay $2,433,622 out of its unreserved fund balance of about $34 million, Franks said.

Mignogna, Irwin Adams, Francis and Pappas said they believe that’s the better option after the board raised taxes by 5% and received an additional $3 million in state funding last year.

“You guys do a tremendous job managing the money that you’re provided. But with the fund balance in excess of $34 million and seeing what happened last year, I would feel like a fool if I would support another increase this year and then we get a couple more million dollars,” Mignogna said.

Francis said last year’s tax increase was “a pretty hefty one” and urged his fellow board members to consider that “there are a lot of retirees that are hurting.”

“Let’s just take a break for a year,” Francis said. “Just for a year, I’d like to put a tax increase on hold.”

Pappas said he supported the 5% tax increase last year because knew there were some issues coming up, but he’s not in favor of any tax increase this year.

“It’s not right,” Pappas said, adding he feels the same way as Mignogna and Francis.

“I’m also a no on raising taxes,” Irwin Adams said.

The 2025-26 preliminary general fund budget may be inspected from 7:30 to 11:30 a.m. and 12:30 to 4 p.m. Monday through Friday at the Altoona Area School District Business Office, 1201 Eighth Ave., Altoona (excluding holidays).

The budget can also be reviewed online at www.aasdcat.com.

The board is scheduled to vote on the final budget at the June 16 meeting. The state requires districts to adopt a general fund budget prior to June 30.

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