ALLENTOWN, PA (June 18, 2026) - At its Thursday, June 18, 2026, Regular School Board of Directors Meeting, the Allentown School District approved its 2026-2027 Fiscal Year Budget. The Board was also presented with critical updates related to capital projects and long-term district fiscal health.
The District has provided consistent updates on its fiscal status and budget development since January. As a part of the 2026-2027 final budget, the District will leverage its existing $35.3 million Fund Balance to initiate capital projects, with no impact on the General Fund operating budget in the first year. These projects include a Family and Community Resource Center and a K-8 Academy on the East Side. Well-maintained facilities are directly linked to improved student achievement, staff morale, and stronger community property values. In addition, modernizing infrastructure is expected to reduce long-term utility and operational costs.
Additional funding for these much-needed projects will come from a 2.9% tax increase in the 2026-2027 school year budget. This marks the first time in three years that the District has proposed a tax adjustment, following a period of intentional fiscal discipline that has maintained an approximately 4% debt-to-operating budget ratio.
The 2.9% increase remains significantly below the state’s Act 1 index of 5.4%, and the impact is estimated to be $71 per year for the average residential Allentown homeowner. To further mitigate the impact on the community, the District is developing a local tax rebate program to be operational for the 2026–2027 tax year. This initiative aims to neutralize the impact of a planned 2.9% millage increase by providing financial relief to homeowners who earn less than $46,520 annually.
To qualify, applicants must meet specific age or disability requirements, maintain local residency, and prove they have fully paid their property taxes. The District’s Finance Office will oversee the application process, requiring documentation such as proof of payment and evidence of participation in the state-level rebate program. By mirroring state eligibility standards, the district expects to support over 2,000 households at a projected cost not to exceed $200,000. This local program ensures that the most vulnerable community members are not burdened by the latest real estate tax increases. Additionally, nearly 15,000 households already benefit from the Homestead/Farmstead Exclusion Program, which provides an average reduction of $1,032 per year.
These proposals follow the recommendations from financial advisors at PFM and S&P Global to ensure sustainable revenue that maintains the District’s strong bond rating.
"We recognize that the community may have questions regarding any proposed tax adjustments," stated Jeff Cuff, Interim Chief Financial Officer. "Our responsibility is to make thoughtful, sustainable decisions that strengthen our school district for the future. This proposal positions us to make meaningful improvements for our students, staff, and community while addressing critical facility needs. We are now positioned to enhance our educational programs, learning environments, and facilities to support the high-quality, top-level education our students deserve. We look forward to making lasting improvements that benefit our students, staff, and community for years to come."
The final budget is available on the District’s website: https://www.allentownsd.org/offices/financial-operational-services/school-budget
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