Hatboro-Horsham board approves proposed final 2025–26 budget; Act 1 index caps tax increase at 4%

The Hatboro-Horsham School District Board of School Directors on April 28 approved a proposed final 2025–26 general fund budget that the administration says is balanced within the limits of the state'set Act 1 index.

The administration presented a $132,900,000 revenue plan that relies primarily on local sources and uses about $1.9 million of fund balance and $1.25 million of a committed reserve for pension contributions. Before any real-estate tax increase, the administration said the budget faced a roughly $3.5 million shortfall; a tax increase up to the Act 1 index of 4% would eliminate that deficit, the presenter said, and the board certified earlier this year it would not levy an increase higher than the index.

The proposed final budget is a required step in the state process; the board approved posting the proposal on the district website, advertising a notice of intent to adopt at least 10 days before final action, and returning on June 16 with a recommended final budget and any refinements made since April. The board also plans to report on property tax reduction credit details and its local property tax rebate program when it returns in June.

Key details presented by the administration include: total projected revenues of $132.9 million; roughly 21% of funding from state and federal sources; use of about $1.9 million of fund balance; a planned use of $1.25 million from a committed reserve for pension contributions; and an expenditure mix dominated by salaries and benefits, with 24% for services, supplies and equipment and about 8% for debt service. The presenter noted the debt for the Keith Valley project is fully phased in and included in the 2025'26 figures.

Board members asked follow-up questions about the local property tax rebate program and participation numbers. The administration said the number of participants in the rebate program was not known at the meeting and that staff would provide that figure at the June presentation.

The board approved the proposed final budget as item 8A on the meeting agenda. A motion to approve was made by Theresa Brown and seconded by Tara Conner Halston; the board chair called for the vote and members present voted in favor.

Next steps set by the board: post the proposed final budget online; advertise a notice of intent to adopt at least 10 days before the final-adoption vote; convene June 2 for a finance-committee final review and return June 16 with a recommendation for final adoption and any refinements.

The action taken on April 28 approved only the proposed final budget; final adoption remains scheduled for mid-June, and any final real-estate tax rate will be set at that later action.