Upper Dublin committee recommends 2025–26 budget with proposed 4% tax increase; committee to forward to board

The Upper Dublin School District Finance Committee reviewed administration’s recommended 2025–26 budget on June 18 and agreed to forward the package — including a proposed 4% property-tax increase — to the full board for final action.

Administration presented a multi-year budget outlook and argued the recommended tax path and reserve strategy are needed to preserve debt capacity and enable capital projects, including the proposed Jarrettown Elementary project. "This is a look at what that long term picture looks like," the business officer said, while noting the numbers assume future Act 1 index increases and revenue from a planned development at 1125 Virginia Drive.

Key points: the proposed operating budget as presented showed a $3.5 million budget gap under current assumptions. Administration proposed covering that gap by a combination of the 4% tax increase, targeted use of one-time resources and letting the projected current-year surplus flow to unassigned fund balance. After those steps, administration projected the district’s unassigned fund balance would rise to about 7.1% of expenditures — within the board’s policy guideline of 5–8%.

A separate but related item proposed creating a committed fund balance of $1.4 million to support an elementary classroom furniture refresh; administration noted the funds are one-time IRA reimbursement dollars received this year and that any purchase would return to the board for approval before orders are placed.

Committee discussion centered on affordability and timing. Several members voiced concern about tax impacts on residents and asked for alternatives; others argued that building debt capacity now is necessary if the district moves forward with the Jarrettown project. One committee member proposed lowering the increase slightly to 3.99%; committee members noted the fiscal impact of a single one-tenth-of-a-percent change is modest (roughly $89,000 in revenue) but would slightly increase reliance on fund balance.

Administration emphasized the budget remains contingent on factors not yet known — state aid levels, final assessment appeal outcomes and final design and borrowing decisions for capital projects. The committee voted to forward the budget and associated resolutions to the legislative board meeting for final action.

What to watch: the budget assumes Act 1 index increases over the planning period and includes a concept to borrow for Jarrettown; if schematic design or market conditions change, the board can pause before awarding construction contracts and re-evaluate financial steps.