North Hills unveils proposed final budget for 2026-27

The North Hills School District’s proposed final budget for 2026-27 was presented at the school board’s April 30 meeting. The proposed $101.6 million budget reflects a 1.5 percent increase over the current year and includes a 0.85 mill real estate tax increase.

The North Hills School District Board of Education approved the proposed final budget for the 2026-27 school year at its committee meeting on Thursday, April 30. The meeting was held in the LGI room at North Hills Middle School.

The proposed budget includes approximately $101.6 million in expenditures, reflecting a 1.5 percent increase over the current year, and projected revenues that result in a $2.5 million deficit.

District officials noted that an initial projected deficit of $4.5 million was significantly reduced through careful review and adjustments. This included a $1.3 million reduction in anticipated salaries and benefits, achieved without furloughs, and a $700,000 reduction in discretionary spending without cutting programs or increasing class sizes.

To close the remaining gap, the district is proposing a 0.85 mill real estate tax increase, which would generate approximately $2.5 million in additional revenue and bring the millage rate from 20.37 to 21.22 mills. The proposed increase is approximately 4.17 percent, just under the 4.2 percent maximum allowed under the Act 1 Index.

The district did not raise taxes last year, a decision made possible by a range of one-time financial factors that are no longer available, including the use of remaining federal COVID-19 relief funds, savings from unfilled support positions, the sale of aging iPads, and a manufacturing grant, among other items.

As Director of Finance and Operations Jerry Muth explained, last year’s gap, approximately $2.8 million and similar in scale to this year’s, was addressed through these one-time measures.

With those resources no longer available, the district is now facing more typical financial pressures, particularly on the revenue side, Muth said. The district remains heavily reliant on local taxes, which account for 97 percent of local revenue, with real estate taxes comprising the majority. However, a 1 percent decrease in overall revenue is projected, largely due to continued erosion of the commercial real estate tax base.

This trend means business properties are contributing less tax revenue than in the past, driven by reduced demand for office and retail space, along with property reassessments and appeals that have lowered assessed values. As a result, the district is experiencing slower revenue growth and increased reliance on residential taxes to fund operations, a shift that is largely outside of its control but directly impacts budget planning.

For taxpayers, the proposed increase would mean:

• $85 per year (about $7.08 per month) for every $100,000 of assessed property value
• Approximately $83 annually for a median home in West View Borough ($98,200)
• Approximately $114 annually for a median home in Ross Township ($134,600)

Mr. Muth emphasized that a large portion of the budget is driven by state and federally mandated expenses, including special education services, student transportation (including charter and nonpublic schools), pension contributions to the Pennsylvania Public School Employees’ Retirement System (PSERS), and cyber charter school tuition. These mandated costs account for nearly $80 million of the total budget, significantly outpacing the funding provided to support them.

Despite these challenges, the proposed budget maintains investments in core academic programming, student support services, facilities and operations, and athletics and extracurricular activities.

“This budget reflects a thoughtful and deliberate effort to balance fiscal responsibility with our commitment to providing high-quality educational opportunities for all students while addressing rising mandated costs,” Muth said.

School Director Samantha Ellwood, who serves as the board’s Finance and Operations Committee chair, echoed Muth’s comments. “This budget was challenging due to continued financial pressure from unfunded federal and state mandates and the ongoing reduction in the commercial real estate tax base due to reassessments—factors not within the district’s control,” she said. “I commend the team for working to minimize the increase in expenses to just 1.5 percent while ensuring we continue quality education and programs for students and maintain the incredible staff in our schools.”

All nine board members voted in favor of the proposed $101.6 million spending plan.

The proposed final budget is available for public inspection at the district’s administration building, located at 135 Sixth Avenue in Ross Township, Monday through Friday from 8 a.m. to 3:30 p.m. It can also be viewed here.

The budget will be discussed at the next meeting of the board's Finance and Operations Committee on May 13 at 6 p.m. in the North Hills Middle School LGI room. The meeting is open to the public.

The 2026-27 final budget will be up for approval at the school board's meeting on June 4.