Haverford Township SD previews $3.1 million shortfall in preliminary 2025–26 budget; board approves bid solicitation for Coopertown project

Haverford Township School District staff on March 6 presented a preliminary 2025–26 budget that projects a roughly $3.1 million operating deficit and proposes a 4% tax increase while keeping current programs and staff intact.

The presentation by Mr. Testa, the district finance presenter, showed the Act 1 index for the next fiscal year certified at 4.4% and estimated a total revenue increase of about $4.5 million over the current year. Staff said local revenue (largely school taxes) represents roughly 80% of the district’s revenue base and that a 4% millage increase would move the tax rate from 18.8951 to 19.6509, which the presentation estimated would mean approximately $262 more annually for the average assessed value.

The nut graf: the board was shown that, absent additional state or federal revenue, the district would draw on reserves to cover the gap. The district’s projected use of fund balance for 2025–26 was shown as about $2.6 million, reducing available unassigned fund balance to an estimated $8.265 million (about 5.18% of the budget) — below the commonly referenced 8% cap for unassigned fund balance.

Mr. Testa walked the board through the main revenue and expenditure drivers. He said special-education funding calculations remain uncertain and federal funding streams that flow through the IU (IDEA), Medicaid access funds and Title programs were modeled flat in the projection. The largest expenditure drivers are salaries and benefits (about 70% of the budget). Non‑salary increases cited included intermediate unit services, tuition to nonpublic schools, utilities, supplies and debt service tied to renovation projects.

Board members questioned debt-service implications, the effect of decreasing assessed values on revenue (the district’s assessed values declined, reducing the yield of a given tax percentage), and the exposure if federal funds were reduced or eliminated. Staff confirmed a $800,000 contingency line in the preliminary budget and said the district would pursue year‑to‑date actuals and tighter spending controls before final adoption. Staff also agreed to prepare an alternative scenario showing the effect if federal funding were removed.

On capital planning, staff described capital reserves separate from bond funds. After summer 2024 projects, capital reserves stood near $4.2 million; staff proposed allocating about $1.0 million for upcoming projects and drawing $500,000 to support the 2025–26 budget, which would leave roughly $2.7 million in capital reserves.

Votes at a glance - Approval of minutes from Feb. 20, 2025 regular meeting — mover: Shelton; second: recorded; outcome: approved (voice vote). - Disbursements / bill list — $1,147,027.79 approved (voice vote). A board member asked for clarification on a U.S. Treasury payment tied to bond interest rebate calculations; staff explained it reflected interest earned on bond proceeds and an associated rebate liability. - Authorization to solicit bids for Coopertown Elementary School renovation and additions — approved; staff said an Act 34 hearing was held that evening and advertisements will run; bid opening planned for April 8 with board authorization to proceed expected at the April 24 meeting. - Approval of settlement and stipulation of counsel in tax‑assessment appeals (Court of Common Pleas of Delaware County) — approved. - Delaware County Community College proportionate share for FY 2025–26 — $1,434,792 approved (discussion noted district benefits such as reduced tuition rates for residents and dual‑enrollment students). - Routine personnel motions (retirements/resignations, contingent appointments, leaves) — approved. - Student educational excursions — approved. - Delaware County Community College trustee reappointments (terms through 06/30/2031) — approved by roll‑call vote (all board members voting yes on recorded roll call).

What the presentation did and did not do - Maintain current programs and contractual obligations: staff stated the preliminary budget “maintains all current programs with no cuts or reductions” and does not include any new permanent staff additions. - Show sensitivity to assessed‑value declines: staff showed that a 4% millage increase yields somewhat less revenue (about 3.73% in their calculation) when assessed values fall. - Model uncertainty in special education: staff said special‑education funding remains a work in progress pending final student data used in state calculations.

Ending: Next steps and timeline Staff said the presentation is a working draft as the district approaches final adoption; the board must approve a final budget by June 5. Staff will continue monthly financial reviews, refine projections using year‑to‑date actuals, and return with updated scenarios (including the requested “federal‑funds‑zeroed” precautionary scenario).