School districts still have several months before they must approve next year’s budgets, but preliminary budget discussions for the 2026-27 school year have included both projected revenue shortfalls and district commitments to not exceed the state-mandated Act 1 index that governs how much they can raise taxes.
Here’s a look at where budget talks, which will continue through the spring before districts adopt final budgets in June, stand:
Allentown
District budget discussions so far have centered on relief that state funds are now flowing. Allentown received a $25 million increase in state funding last year, the third-largest across Pennsylvania districts.
Allentown was one of three Lehigh Valley school districts that did not implement a tax increase in last year’s budget.
The district’s Act 1 index is set at 5.4% for the 2026-27 school year. The board passed a resolution to not exceed that index during its Oct. 23 meeting.
“As in prior years we will aim to provide a balanced budget that addresses the goals and visions of the district while being fiscally responsible,” Interim Chief Financial Officer Jeffrey Cuff said in an email. “The governor will be releasing his budget in early February. Because our budget is approximately 67% state funded, once the budget is released it will help us to frame the district’s approach to the 2026-27 budget.”
Bangor Area
The district implemented a 0.97% tax increase in last year’s budget. Its Act 1 index for 2026-27 is set at 4.5%.
Bethlehem Area
A budget update during the Dec. 1 school board meeting projected a $16.1 million deficit for the 2026-27 school year.
Chief Financial Officer Harry Aristakesian noted that the current state budget included more funding than the district had assumed in its 2025-26 budget, allowing an anticipated $5.7 million pull on reserve funds to be dropped to $3.2 million.
“The picture is definitely getting better, we’re just not quite there,” Aristakesian said of ongoing budget planning.
During committee discussions, the district also reviewed an Act I resolution that would hold a 2026-27 tax increase at or below 4.2%. Last year’s budget saw a tax increase of 3.63% for Lehigh County residents and 4.79% for Northampton County residents.
Catasauqua Area
The board received a preliminary budget update during its Nov. 11 meeting.
The district’s Act 1 index is set at 4.4% for the 2026-27 school year. Last year the district raised taxes 6.3% for Lehigh County residents and lowered taxes 4.5% for Northampton County residents.
Easton Area
A budget presentation presented to the board Dec. 2 projected a $7 million deficit for the 2026-27 school year.
“That is where we start with budgets usually,” Chief Financial Officer Jack Trent said, “so it’s not something to sound the alarm about just yet.”
Plans for a new, $298 million high school dominate the district’s construction needs, and the preliminary budget assumes a 3.5% tax increase following the capital projects plan. Taxes increased at that same level in last year’s budget.
The board also approved an Act 1 resolution that would keep tax increases within the index of 4.5%.
Ongoing budget discussions will focus on protecting and rebuilding the district’s fund balance, Trent said.
“The district has been utilizing its reserve funds to cover budget gaps for multiple years now,” Trent said. “It’s been identified as an unsustainable practice for us.”
An updated budget will be presented to the board in March.
East Penn
School board members approved an Act 1 resolution during their Dec. 8 meeting. It would hold tax increases at or below 4.1%. Last year’s budget included a 4% tax increase.
The resolution notes that the requirements of its 2025-26 Ready-to-Learn Block Grant bars the district from exceeding the Act 1 index for the 2026-27 school year. A voter referendum would be required to take that step, Business Administrator Robert Saul said.
Board members also reviewed a $142 million redistricting proposal presented as an alternative to the K-8 realignment option paused this summer.
In part due to the greater cost of the redistricting proposals, board members and district administrators emphasized that both options are still under consideration.
Nazareth Area
The district increased taxes 2.95% in last year’s budget. For 2026-27, its Act 1 index is set at 4.1%.
Northampton Area
Superintendent Joseph Kovalchik said at the school board’s Dec. 1 meeting that the first presentation of next year’s budget will come this month. It’s first full board meeting is Jan. 12.
Last year’s budget included a 4% tax increase. The district’s Act 1 index for 2026-27 is set at 4.2%.
Northern Lehigh
School board members approved an Act 1 resolution on Dec. 8. The resolution, which passed without discussion or opposition, limits a tax increase to 4.8%. Last year’s budget included a 2.5% tax increase.
The district is looking to pass a preliminary budget in early April, said Director of Business Affairs Sherri Molitoris.
“We are reviewing considerable projected costs for facility repairs and preventative maintenance,” Molitoris said in an email. “We must also consider the rising costs of health care benefits for our employees.”
Northwestern Lehigh
The school board will review a budget presentation on Wednesday.
“We are recommending to stay with the Act 1 index, so we will ask for the resolution to be approved on the January 21st meeting,” Business Administrator Christie Steigerwalt said in an email.
The district’s Act 1 index for 2026-27 is set at 3.5%. Last year’s budget raised taxes at that same level.
Parkland
A preliminary 2026-27 budget presented to the school board on Nov. 10 projects a $20 million deficit prior to any tax increase, according to board minutes.
“The Act 1 index of 3.5% would generate about $5.8M of new tax revenue and bring the shortfall to $14M,” the minutes state. Last year’s budget raised taxes 4%.
Director of Business Administration Leslie Frisbie advised the board to adopt a resolution to stay within the Act 1 index. More discussion will come this month.
Pen Argyl
During the Nov. 18 board meeting, minutes note that Business Manager Jamie Achenbach advised the school board that district administration recommends staying within the Act 1 index of 4.4%.
A resolution to that effect was placed on the board’s Dec. 2 agenda.
Pen Argyl was one of three Lehigh Valley school districts that did not implement a tax increase in last year’s budget.
Salisbury Township
Department and building budgets were due Monday, Chief Financial Officer Dawn Nickischer said in an email.
“I will spend a good portion of January entering information into our accounting software and also reviewing salary projections based on each specific contract/agreement the district has with out staff. I most likely will bring revenue projections to the board in February and a very high level look at expenditures,” Nickischer said. “It will not be until March that I will be able to provide a more complete projections, at which time discussions will start on ways to close any gap we may be faced with.”
The district raised taxes 3.8% in last year’s budget. Its Act 1 index for 2026-27 is set at 3.5%. At its Nov. 19 meeting, the board approved a resolution to not exceed that index.
Saucon Valley
School board members addressed a resolution to not exceed the Act 1 index, which is set at 3.5% for 2026-27, during their Dec. 16 meeting.
Saucon Valley was one of three Lehigh Valley school districts that did not implement a tax increase in last year’s budget.
Southern Lehigh
The Nov. 24 school board meeting agenda included a resolution that would limit a tax rise to 3.5%. Last year’s budget raised taxes 2.6%.
“The District has determined that, even in a worst-case scenario, it will not be necessary to raise taxes by more than the index in order to balance its budget for the fiscal year 2026-2027,” the resolution states. The board approved the resolution with no discussion or opposition.
Whitehall-Coplay
The district’s adjusted 2026-27 Act 1 index is 4.7%. Discussion on an opt-out resolution to limit tax increases to that level is scheduled for the Jan. 12 school board committee meeting, with the board expected to adopt the resolution at its Jan. 26 meeting.
Taxes rose 4.6% in last year’s budget.
Wilson Area
A resolution to opt out of exceeding the Act 1 index was placed on the school board’s Dec. 15 agenda.
Last year’s budget included a 3.5% tax increase.