The Reading School District is proposing a $516.7 million budget for the 2026-27 school year that includes a real estate tax increase after nine years without a millage hike.
Wayne Gehris, the district’s chief financial officer, presented the proposed final budget Wednesday during the school board’s committee of the whole meeting. The spending plan totals $516,730,719, an increase of about $35.1 million, or 7.3%, over the current budget of $481,584,791.
Under the scenarios presented Wednesday, a 4% tax increase would raise the millage rate to about 18.65 mills from 17.93. The owner of a $100,000 assessed home would pay approximately $1,864 annually before the homestead exemption, an increase of about $71 per year.
Gehris said the district’s long-standing decision to keep taxes flat has reduced its share of state funding under Pennsylvania’s education funding formula.
“The fact that we have not raised our real estate taxes over the last several years … now creates capacity, so our residents have the ability to pay more tax,” Gehris said. “The larger the capacity, the less of a multiplier we get.”
The district also presented a maximum allowable increase of 5.7% under the adjusted Act 1 index, which would raise the rate to roughly 18.95 mills and increase taxes on a $100,000 assessed property to about $1,895 annually before the homestead exemption.
Gehris said a 4% increase would generate about $940,000 in additional revenue after accounting for the district’s collection rate, while the maximum increase would generate about $1.3 million.
The proposal assumes the district will receive full funding under Gov. Josh Shapiro’s proposed state education budget, including basic education, special education and adequacy funding.
“We are assuming that 100% of it’s available,” Gehris said of the proposed state funding.
Gehris said the district expects state revenue to increase by approximately $38 million, or 10.4%, from the current year, with adequacy funding accounting for much of that growth. State sources would make up about 78% of the district’s total revenue under the proposed budget.
The budget also relies on $10 million from the district’s fund balance and another $15 million in assigned fund balance for construction services.
Gehris said the proposal accounts for increases required under collective bargaining agreements, a 10% increase in health care costs, inflationary increases for discretionary spending, and rising transportation costs tied in part to electric buses and fuel prices.
The district also is proposing dozens of new positions, including assistant principals, reading and math intervention staff, special education teachers and paraprofessionals, counselors, social workers, home-school visitors, STEAM teachers and additional English language learner support staff.
Officials said the additions are intended to address growing student needs, particularly in early intervention, special education and attendance support.
The board is expected to vote on the proposed budget at its regular meeting next week.
Action on the final budget must be taken by June 30 under state law.