Property taxes for residents of the Lower Merion School District would see another increase under the latest proposed final budget for the 2026-27 school year.
Under that budget, which was presented by Victor Orlando, chief financial officer for the Lower Merion School District, property owners would see a 3.5% tax increase.
The millage increase is 1.2343 mills, or up from 35.2674 mills in the 2025-26 school year to 36.5017 mills in 2026-27. One mill represents $1 for every $1,000 of a property’s assessed value.
District officials say the tax increase is needed to fill a budget gap of just over $9.5 million.
According to figures presented at the school board meeting, a property with a median assessment of $250,680 would see its tax bill increase from $8,841 to $9,150 in 2026-27, or $309.
In January, the school board adopted a resolution agreeing not to increase taxes by more than 3.5%, which represents the limit under the state’s Act One.
Orlando cited several budget challenges, including property reassessments, declining investment returns due to lower Fed rates, higher inflation-related costs, increases in mandated programs, and higher personnel costs.
One of the challenges Orlando cited was a decrease in the value of some properties due to assessment appeals and teardowns.
Orlando also cited that the district’s investment income is decreasing due to lower interest rates.
According to Orlando, at the start of this fiscal year, the district was earning 4.2% on its investment income, but due to lower Fed rates, it is now earning about 3.5%.
On the expenditure side, the district’s largest expense is staff salaries and benefits.
The district anticipates spending $160.7 million on salaries next year, up from $157.9 million this year.
On the benefits side, Lower Merion anticipates spending $106.9 million in the upcoming school year, up from $100.5 million in the current year’s budget.
About 85% of the district’s total revenue comes from local taxes, 15% comes from state funding, and about 1% comes from federal sources.
After this week’s approval of the proposed final budget, the next steps include a finance committee meeting on May 15, followed by a vote on the final budget by the school board on June 15.