09/22/2026
Upper Allen Township has kicked off its 2027 budget season with an initial meeting on September 17.
Although I could not attend in person, I reviewed the meeting materials obtained through a Right-to-Know request. This opening meeting typically establishes year-end projections for the current year (2026) and offers a preliminary look at the upcoming year's figures, with detailed discussions to follow.
Based on my analysis of the financial records, I have several concerns regarding the township’s fiscal outlook:
Flat Real Estate Tax Revenue: A noticeable slowdown in local real estate development has left the preliminary 2027 real estate tax revenue projection completely flat. Because real estate taxes generate roughly 30% of total township revenue, stagnant growth alongside rising labor and material costs leaves local leaders with a difficult choice: cut public services or increase taxes.
Overly Optimistic Earned Income Tax (EIT) Projections: EIT revenue for 2026 is projected to finish $250,000 below budget—its lowest point since 2023. Despite this downturn, the initial 2027 budget relies on an ambitious 12% growth projection. This assumption carries significant risk, given that EIT accounts for 31% of overall tax revenue.
Declining Real Estate Transfer Taxes: Real estate transfer taxes for 2026 are also trending toward their lowest levels since 2023. While the draft 2027 budget anticipates a rebound, current historical data does not support this optimism, further indicating a broader real estate cooling.
Impact on Mechanicsburg Area School District (MASD)
These fiscal pressures extend beyond township borders. MASD has historically depended on development in Upper Allen Township to help cushion tax increases. While a slowdown in new construction may temper student enrollment growth, overhead costs—such as staff salaries and operational supplies—will continue to rise regardless.
Looking Ahead
Nearby municipalities like Mechanicsburg and Shiremanstown have operated under low-to-no growth conditions for years and will remain largely unaffected. In contrast, Upper Allen Township and MASD face substantial structural challenges to balance their 2027 budgets. Expect tough policy decisions ahead—especially if voters approve the proposed Land Preservation tax increase this November.