Hatboro‑Horsham presents proposed 2025‑26 budget; balanced using Act 1 index real‑estate tax increase

Hatboro‑Horsham School District administration presented a proposed final 2025‑26 budget April 7 that would increase spending about 3.32% (roughly $4.4 million) from the current year and is balanced in the proposal by a real‑estate tax increase at or below the Act 1 index (presented as 4%). The board will receive the proposed final budget at the April 28 legislative meeting; a final budget is anticipated for approval June 16.

Director of Business Affairs Mr. Stone gave the presentation and said revenue projections show an increase of about $924,000 before any tax increase; local revenues (real estate, earned income, transfer taxes) are projected to rise about $7.3 million as the district factors assessed‑value growth into estimates. State and federal aid were budgeted at current year levels pending enactment of the commonwealth and federal budgets, Stone said.

Stone identified several drivers of the proposed budget: salaries and benefits remain the largest expense and account for much of the increase across functions; a $300,000 electricity cost increase is expected because PJM is passing through higher capacity charges; insurance costs are temporarily higher while the district continues to insure the Keith Valley facility until demolition; and transportation equipment needs will require purchasing two school buses and two vans next year (rather than the typical one bus and one van cycle).

Accounting reclassifications also affected line items: certain lease obligations have been moved from object 400 to object 900 to comply with accounting rules, producing large decreases in some line categories and offsetting increases elsewhere.

On security, the district shifted from contracted guards to district employees. The administration reported four guards currently (three at the high school and one at Keith Valley) and proposed adding a fifth guard, primarily for Keith Valley. The personnel budget will reflect those staffing changes and related fringe benefit costs. Stone also said the district will recommend a facility rental policy update tied to the opening of Keith Valley to ensure community rental fees better match costs.

Stone noted federal ESSER funds have expired and remaining federal allocations have been reclassified into salary and benefit lines; the food service fund remains separate and the district said no change to free and reduced meal programs is planned despite an increased object line for travel/meeting meal costs.

Stone said the administration is carrying a placeholder in the budget for a recommendation from the district’s artificial intelligence committee for a potential platform; details will come from that committee.

Next steps: administration will prepare the required reports and present a proposed final budget for adoption at the April 28 legislative action meeting; the presentation emphasized the numbers are still subject to refinement before the June final adoption.