ALLENTOWN, Pa. – The Allentown School District Board of Directors received an update on the 2026-27 budget Thursday night at the administration building.

The district’s proposed $512 million spending plan features a 2.9% tax increase on property owners. Under the proposal, a property assessed at $107,920 would incur a $71 annual increase from $1,412 to $1,483. The district’s Act 1 Index, the highest ASD can raise taxes without voter referendum, is 5.4%, according to Interim Chief Financial Officer Jeffrey Cuff.

“There are other districts who are maximizing their increases to that Act 1 Index,” Cuff said. “We’re not there.”

Finance officials said the 2.9% hike would provide ASD adequate borrowing capacity for major capital improvements, allowing them to leverage about $363 million. The district indicated Thursday night S&P Global Ratings revised their outlook on ASD’s existing general obligation debt from “stable” to “positive.” The credit rating agency also affirmed the district’s “BB+” rating the debt itself.

The increased bond rating saved ASD about $300,000 on bond insurance on their bond issuance, $350,000 in interest in that same bond issuance, $3 million in potential savings for future general obligation bond debt, and the ability to restructure existing debt.

Director Nick Nicholoff said capital projects are for “a finite period of time.” Tax increases, however, are permanent.

“We are looking at imposing an indefinite cost increase on taxpayers for finite time period project,” Nicholoff said.

Cuff said the money would be used for future capital projects for a district that has an aging building infrastructure.

Other directors who spoke also expressed concern about the 2.9% tax increase. While other school districts are in fact raising the percentage of their increases beyond what ASD is proposing, directors reminded administrators those higher percentages, in many cases, are in wealthier districts than ASD.

The half billion-dollar budget increases district spending by 5.9% compared to this year’s spending plan. Salaries constitute the largest expenditure with $164.3 million, a 4.3% increase from the 2025-26 school year. Tuitions and purchased services are set to cost ASD $131 million next year, the highest year-to-year percentage increase at 11.7%. ASD will also allocate $107 million in employee benefits.

The majority of the budget’s revenue — 70% — will come from the Commonwealth of Pennsylvania. A quarter will come from local sources, primarily $105.5 million in real estate taxes, with the remaining 5% courtesy of the federal government. Directors learned the state’s $361.4 million contribution to ASD is a 7.7% increase from the current spending plan.

Thursday night’s action produced no formal board action. A budget forum will be held May 20 at Hayes Elementary School, with the preliminary budget scheduled for adoption May 28. The final budget vote is scheduled June 18.

New Director

During a special meeting held late Thursday afternoon, the board appointed Nancy Wilt as the board’s newest director. Wilt occupies the seat which had been vacated by Ana Tiburcio.

Wilt is no stranger to the board, having been elected in 2019 and later acquiring the board’s presidency. Tiburcio resigned following her election to represent Pennsylvania’s 22nd House District in February.

‘Project Lead The Way’

The board approved purchasing 11 “Project Lead The Way” courses for the Bridgeview Academy of Health, Science, Innovation and Technology. The purchases involve various courses, which include computer science pathways, computer science principles, computer science A, cybersecurity, principals of AI, engineering design, aerospace engineering, computer integrated manufacturing, biomedical science, human body systems, medical interventions and biomedical innovation.

The coursework “aligns perfectly” with the district’s mission to provide an “innovation-themed high school.” Lead The Way has problem-based instructional design that transcends traditional role learning, according to ASD officials.