ALLENTOWN, Pa. – The Allentown School District on Thursday took the first step in its annual budget process.

Interim Chief Financial Officer Jeffrey Cuff kicked off the budget season with an update on the district’s financial picture.

Cuff said the district’s Act 1 index, or the limit on a tax increase, is 5.4%, but noted that taxpayers have not seen a tax increase in three years.

The Act 1 index was passed by a special session of the Pennsylvania Legislature in 2006 and requires school districts to receive voter approval or Pennsylvania Department of Education exceptions to implement tax increases greater than the index.

The index is calculated based on a district’s wealth and a base index of 3.5. Wealthier districts have lower indexes because they have less need for revenue, he said.

Cuff said a more complete financial picture will be available after Gov. Josh Shapiro presents his proposed budget for the 2026-27 fiscal year on Feb. 3 during an address to a joint session of the Pennsylvania General Assembly at the state Capitol.

The budget address will give the first indication of state funding, Cuff said.

“It’s a major first step in the budget process and sets the framework for what our revenues will be for the entire year,” Cuff said.

According to Cuff, the district receives 67% of its revenue from the state.

The district’s highest costs are salaries at 35% and benefits at 25%, followed by charter tuition at 19%. Debt service and other expenses total 21%.

If a tax increase is needed, the district will alert taxpayers in May when the budget is presented.

For her part, district Superintendent Carol Birks said the district is focusing on several “big rocks” for the 2025-26 school year, including literacy instruction and Algebra 1; theme-based schools; the Family Engagement and Resource Center and new school design; leadership pipeline development; and artificial intelligence.

Birks also presented information on student demographics.

According to the presentation, of the district’s 16,060 students, 69% are White, 20% Hispanic, 9% Black, and 1% Native Hawaiian/Pacific Islander and Asian.

Additionally, 75% of students are considered economically disadvantaged, 24% are English language learners, and 19.2% receive special education services.

Of the district’s 2,591 staff members, 57% are teachers, 26% are support staff, 11% are part-time, and the remaining 6% are administrators.

Birks said the district’s budget process will conclude with final review and adoption in June.

Program of studies

The board also approved the 2026-27 program of studies, which includes the proposed addition of five new courses at the high school and one related arts course at the middle school.

“I’m glad to see we’re filling these gaps,” said school board President Andrene Brown-Nowell, who noted the district has lost some students to arts schools that offer an arts curriculum.

Employee recruitment

Also Thursday, the board approved hiring Alma Advisory Group, an executive search firm, for $191,250 to assist in recruiting a director of science, assistant superintendent of student services, executive director of English language services, chief of family and community engagement, and the William Allen High School principal.

The cost for services is 25% of each candidate’s first-year base salary. The firm will provide access to a broader and more competitive pool of highly qualified candidates, according to district documents.