ALLENTOWN, Pa. \u2013 The Allentown School District on Thursday took the first step in its annual budget process.<\/p>\n
Interim Chief Financial Officer Jeffrey Cuff kicked off the budget season with an update on the district\u2019s financial picture.<\/p>\n
Cuff said the district\u2019s 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.<\/p>\n
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.<\/p>\n
The index is calculated based on a district\u2019s wealth and a base index of 3.5. Wealthier districts have lower indexes because they have less need for revenue, he said.<\/p>\n
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.<\/p>\n
The budget address will give the first indication of state funding, Cuff said.<\/p>\n
\u201cIt\u2019s a major first step in the budget process and sets the framework for what our revenues will be for the entire year,\u201d Cuff said.<\/p>\n
According to Cuff, the district receives 67% of its revenue from the state.<\/p>\n
The district\u2019s highest costs are salaries at 35% and benefits at 25%, followed by charter tuition at 19%. Debt service and other expenses total 21%.<\/p>\n
If a tax increase is needed, the district will alert taxpayers in May when the budget is presented.<\/p>\n
For her part, district Superintendent Carol Birks said the district is focusing on several \u201cbig rocks\u201d 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.<\/p>\n
Birks also presented information on student demographics.<\/p>\n
According to the presentation, of the district\u2019s 16,060 students, 69% are White, 20% Hispanic, 9% Black, and 1% Native Hawaiian\/Pacific Islander and Asian.<\/p>\n
Additionally, 75% of students are considered economically disadvantaged, 24% are English language learners, and 19.2% receive special education services.<\/p>\n
Of the district\u2019s 2,591 staff members, 57% are teachers, 26% are support staff, 11% are part-time, and the remaining 6% are administrators.<\/p>\n
Birks said the district\u2019s budget process will conclude with final review and adoption in June.<\/p>\n
Program of studies<\/p>\n