Bellefonte’s district eyes another tax hike. How much could it cost homeowners?
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- The Bellefonte Area School District plans to raise taxes next year.
- District officials say local taxes could increase by up to 2.5%.
- The $70.2 million budget will be refined before being considered for approval in June.
The Bellefonte Area School District expects to raise taxes next year as part of its 2026-27 budget.
During a presentation before Bellefonte’s school board on Tuesday, district officials said the proposed final budget could raise taxes by up to 2.5%. The planned increase, which falls below the maximum allowable raise under Pennsylvania’s Act 1 index, would mark the sixth straight year Bellefonte’s district raised local taxes after keeping them level for the 2020-21 budget year.
Superintendent Roy Rakszawski said Bellefonte’s budget office is working to lower the projected tax hike as it irons out final details for the 2026-27 budget year.
“At this time, as we stated at the last meeting, we still hope to come in no higher than [a] 2.5% increase, and we’re still working toward getting close to a 2% increase for next year’s budget,” Rakszawski said.
A 2.5% tax increase would cost the average homeowner within Bellefonte’s district roughly $76.43. The average impact would fall to $59.89 if the district’s next budget instead raises taxes by 2%, according to district estimates.
The district’s proposed final 2026-27 budget accounts for $64.8 million in total revenues and $70.2 million in expenditures. The budget is expected to set roughly $1.97 million aside for future capital projects.
Ken Bean, the district’s director of fiscal affairs, said Bellefonte’s budget office is working set money as much money aside for future capital projects as possible without spiking local real estate taxes. The total set aside for future projects will ultimately depend on projected health insurance costs, though the district expects to set aside at least $1 million.
“I’m trying to keep that as high as we can to smooth out our future capital project expenditures of which we have some roofs, some other issues coming up that will need some short-term fixes in the next year or two. We have to look at that and get as much money put aside for that,” Bean said.
Bellefonte’s primary local revenue sources, real estate and earned income taxes, comprise 49% and 13% of the proposed 2026-27 budget, respectively. Pennsylvania’s basic education subsidies account for roughly 16% of next year’s projected revenue, while federal sources total just 1%.
Inadequate funding for special education programming presents a major challenge for Bellefonte’s district, Bean said. His team projects special education subsidies will represent just 3% of the next budget’s total revenues.
“This is the same way across the state,” Bean said. “Obviously, one of the biggest cost drivers in any school district budget is special education, and the state has woefully been behind in keeping up or even maintaining those costs.”
Bellefonte officials will present a more detailed look at planned 2026-27 expenditures, as well as its next food service and athletic budgets, at the school board’s April 21 meeting. The district remains on track to have the school board review the final budget in May before potentially adopting it in June.
Bellefonte is expected to join at least the State College Area School District in raising local taxes for the 2026-27 budget year. The latest presentation from State College’s financial officials showed the district is planning a 3.5% hike, while Centre County’s three other districts have not yet presented preliminary budget details.
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