Upper Dublin Finance Committee moves proposed final 2025–26 budget for public inspection; recommends up-to-4% tax increase

On May 13, 2025, the Upper Dublin School District Finance Committee reviewed the administration’s proposed final budget for the 2025–26 fiscal year and agreed to forward it for public inspection, incorporating a proposed 4% tax increase (the Act 1 index cap for this year).

District business staff reported a proposed-budget shortfall of approximately $2,240,000 in the 2025–26 draft. The administration’s proposed approach combines a 4% tax increase with the planned use of year-end fund balance and one-time federal IRA funds the district received. The plan as presented includes setting aside $1,400,000 of the recently received IRA funds for a classroom-furniture refresh and using $2,200,000 of fund balance to cover the remaining near-term deficit, while maintaining a multi-year view of revenues and expenses.

Administration noted several drivers behind the gap: a projected drop in net revenue from assessment appeals (estimated roughly $1.25 million in lost revenue this cycle), rising personnel and benefits costs, and fewer large new-assessment developments coming online compared with prior years. The administration also included a $75,000 placeholder for a partial state budget increase in its revenue forecast. The proposed budget maintains the district’s operating expenditures and continues a policy of contributions to the capital reserve in part, while acknowledging that future large capital projects (including Jarrettown modernization and a potential transportation facility) will increase future debt-service requirements.

Committee members discussed long-range scenarios in which the district adjusts tax growth to the Act 1 index in future years or relies on anticipated new assessments (including 1125 Virginia Drive) to close multiyear gaps. The administration presented multi-year fund-balance projections showing that, under a range of assumptions, the district could preserve a runway through the late 2020s but that decisions on capital transfers, bond issuance and future tax rates will materially affect long-term position.

The committee voted to forward the proposed final budget and the related draft resolutions that set the millage and homestead/farmstead rebate parameters for public inspection; the final budget and millage resolution remain scheduled for Board action at the June meeting.