LOWER MERION — Lower Merion school district officials last week presented a final preliminary budget, showing a 4% tax increase for the 2025-26 school year.
The district could still lower the proposed tax increase before the final budget is voted on in June. However, it cannot be increased since 4% is the limit under the state’s Act 1 index.
For the 2024-25 school year, the district’s real estate tax millage rate has been a bit more than 33.91 mills. One mill represents $1 for every $1,000 of a property’s assessed value.
If the 4% hike remains when the final budget is approved, the new millage rate would be nearly 35.27 mills for 2025-26.
Under that, a median household assessment of $250,680 had a 2024-25 real estate tax of $8,501. For 2025-26, the tax for the same property would be $8,841.
Victor Orlando, the school district’s business manager, said about 80% of Lower Merion’s revenue comes from local tax sources, just under 14% comes from the state, and about a half of 1% comes from the federal government.
About 5% of the budget comes from the school district’s fund balance and other sources.
From local tax sources, the district anticipates collecting $276.3 million, which is up from just over $274 million in the current school year.
Most of the local sources in the upcoming year comes from the real estate taxes at $260 million. Other large local sources include $4.59 million in real estate transfer tax, $5 million in interest income, and $3 million in delinquent real estate taxes.
Orlando also listed $46.8 million in state funding, $1.8 million in federal funding and $12.9 million for the sale of property.
The mention of the property sale is in reference to the district’s Oakwell site in Villanova.
The district decided to sale the property after having scrapped plans to convert the site for playing fields for Black Rock Middle School. It is scheduled to settle in the spring of 2026.
Orlando listed possible uses for the $12.9 million, including phase 2 of the Bala Cynwyd Middle School roof replacement, school bus replacement, administration and high school roof projects, and playground renovation projects.
The district anticipates receiving total revenues of just under $341.7 million for the 2025-26 school year. In the 2024-2025 school year budget, the district listed revenues of $329.278 million.
The final millage rate will be set when the board approves the final budget in June. That vote is expected at the board’s June 16 meeting.
The bordering Radnor Township School District also proposed a 4% tax hike for 2025-26.
Originally Published: May 5, 2025 at 8:27 AM EDT