School Board proposes 4% tax increase to address $3.5M budget deficit

The Upper Dublin School District's Finance Committee recently addressed a significant budget deficit of $3.5 million during their meeting on June 18, 2025. This deficit comes despite a proposed 4% tax increase, which translates to an additional $302 for properties at the median assessed value. The district's total revenue budget stands at approximately $124.7 million, while expenditures are projected at $1.245 billion, including a separate $3 million transfer to the capital reserve.

The committee highlighted that the current fund balance is at 4.3%, slightly below the board's policy guideline of 5-8%. However, a strategy to roll over this year's surplus into the unassigned fund balance could elevate this figure to 7.1%, strengthening the district's financial position moving forward.

Key discussions included the impact of one-time expenses and the need for careful planning regarding recurring costs. The committee noted that while the district has enjoyed structurally balanced budgets in recent years, the current financial landscape requires a more cautious approach. The budget reflects a 6.6% increase in expenses, driven by factors such as assessment appeals and rising costs in special education.

In terms of revenue adjustments, the district anticipates an increase of $115,000, primarily from property taxes and state funding for high-cost students. However, the committee also decided to remove lifeguard expenses from the budget, as outside groups have been providing their own lifeguards for facility use.

Looking ahead, the committee emphasized the importance of long-term financial planning, including potential tax increases aligned with the Act 1 index and capturing revenue from future developments. The district aims to stabilize its fund balance over the next four years, ensuring that it can meet its financial obligations while continuing to provide quality education to its students.

As the district navigates these financial challenges, community members can expect ongoing discussions about budget strategies and their implications for local taxpayers. The Finance Committee's proactive approach aims to secure a balanced budget while addressing the needs of the Upper Dublin School District.