BUFFALO TWP — Freeport Area School District is projecting a $41.19 million budget for the 2026-27 school year, up slightly from the current year.

The general operating budget, presented Wednesday, March 11, at the school board meeting, projects revenue for 2026-27 to be $41.01 million, around a $179,300 shortfall that will be made up by dipping into the district’s reserve balance.

The budget’s expenditures are an increase of around $1.4 million.

The millage rates are anticipated to be set at 187.5 mills for Butler County residents, an increase from 185.91. Meanwhile, Armstrong County residents could see their millage rates go down by almost 5 mills, to 60.85.

Brad Walker, Freeport’s director of finance and operations, said the millage rates are “rebalanced,” and the current projected budget assumes there is no additional increase to local revenue.

“The important takeaway from tonight’s budget presentation going into next month, is that administrative team needs some feedback from the board to really say what local revenue scenario you would want to build your preliminary budget,” Walker said.

A mill is equal to a $1 tax increase for every $1,000 of a property’s assessed value.

Next year’s budget projections come after a year where Freeport’s board marginally passed a $55 million high school renovation and increased taxes up to the state index maximum level, by around 5% for residents of both counties.

Last year, the district borrowed its first round of money to fund the renovation at $10 million. Walker said moving forward, there are several borrowing scenarios “to get us where we need to be” for the project.

There are still a lot of moving parts. Revenue from the state is still uncertain with the state’s budget in the works. There will also be an increase in health insurance costs. Board member Sylvia Maxwell commented during the meeting that state legislators could continue to look at cyber charter funding reform, something that would impact public districts.

The budget will be further presented through April and May, with a vote for final approval in June.

“A roughly $180,000 deficit, you can see that puts us around a one percent-ish increase in local revenue to balance the budget as it stands,” Walker said. “We’re still waiting on a lot of moving parts. The state budget, our enrollment, our health care is going to be a 13% increase, that has to be finalized heading into next year. We’ll build that into next month, but that’s why we need recommendation from the board as to how we want to build our budget.”