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2025-2026 Budget

Summary

The Fox Chapel Area School Board adopted the 2025-2026 final budget at its regular business meeting June 9, 2025. The budget calls for total expenditures of $123,187,421 and total revenues of $120,709,693. The budget will be balanced via a 2.3% tax millage increase and the utilization of a portion of the available fund balance. The 2.3% millage increase falls below the 4% Act 1 index increase allowed by the state. 

The tax increase reflects a decrease in real estate revenues in relation to changes in assessment values and an increase in recurring costs related to student transportation.

The 2025-2026 final budget reflects the following:

  • Increased expenses due to facility improvements
    • Water/sewer line repairs
    • HVAC upgrades
    • Building safety upgrades
    • A funds transfer into the Capital Reserve Fund to be used toward the district’s multiphase capital projects plan
       
  • Employee insurance premium increases
    • 5.7% for medical coverage
    • 3% for dental coverage
    • 3% for vision coverage
       

  • Public School Employees’ Retirement System (PSERS) employer contribution rate of 34% for 2025-2026

    • This accounts for 14% of the overall budget. The state reimburses the district 50% of the costs.

The final millage rate for 2025-2026 is 22.0076 mills. Each mill generates approximately $3.7 million for the school district. Properties that have approved homestead/farmstead exemptions will see an increase below 2.3% due to an increase in property tax relief funds from the state.

Gaming Funds Distribution

On May 1, 2025, the Pennsylvania Department of Education provided the Fox Chapel Area School District with the amount of the district’s share of gaming funds available for distribution. The final budget includes a distribution of $2,552,188. The method of distributing these funds, as prescribed by Act 1, the Taxpayer Relief Act, will be via the implementation of the homestead exclusion. Under this provision, any property in the school district that was approved by Allegheny County as a homestead will have the lesser of its taxable value, or an estimated $14,821 of its taxable value, excluded for the purpose of calculating school district real estate taxes for the 2025 tax year. Based on the final budget, the owners of the 7,843* properties in the district that qualified for the homestead exclusion will receive the equivalent of a $326.17 reduction in their property taxes. This is an increase of $35.22 over the previous year’s reduction. 

Property owners who currently do not have an approved homestead exclusion will have the opportunity to apply again when the district sends out letters to eligible homeowners in December 2025.

*Allegheny County has certified that there are 7,843 approved homestead properties in the district. If that number is adjusted by the county to include fewer or more properties, it could affect the amount of the final reduction.

Future Challenges

  • Assessment value reductions due to Allegheny County assessment appeals

    • For the first time in 10 years, the district’s total taxable assessment values have decreased from the previous year, resulting in a decrease of real estate revenue of approximately $250,000
       

  • PSERS contributions continue to be a challenge for school districts in Pennsylvania.

    • The employer contribution rate is set by PSERS trustees, not by the district

    • The district anticipates paying more than $47 million in PSERS contributions during the next five years
       

  • Projected multiphase capital projects plan

    • Projects address repair, replacement, and upgrades of equipment and infrastructure of aging district facilities

      • The current phase includes updates to the Hartwood Elementary HVAC system and interior lighting, windows at Fairview Elementary, and upgrades to the tennis courts at Fox Chapel Area High School
         

    • The current version of the plan includes an outstanding projected total cost of more than $30 million spread over 10 years

      • The district plans to utilize available funds assigned for capital expenses in both the General Fund fund balance and external Capital Reserve Funds

      • The district is looking into additional alternative funding opportunities, including grants, as well as possibly increasing the district’s debt service profile