Board approves preliminary 2025-26 budget, leaves door open to Act 1 referendum exception over rising special‑education and health costs

The Abington Heights School District Board of Directors on Wednesday approved a preliminary general fund budget for the 2025-26 school year and authorized the district to begin the public‑notice timeline needed to apply for an Act 1 referendum exception tied to special‑education cost increases.

Mister Mirabelli (role not specified), who presented the finance overview, said Pennsylvania Department of Education calculations show the district's special‑education costs rose by $625,000 from 2022-23 to 2023-24 and that the district would have approximately $224,003.61 available above the 4.7% Act 1 index if it pursued a referendum exception.

The district's preliminary budget document incorporates assumptions Mirabelli described in detail: a 3% contractual salary increase, an estimated $1,450,000 increment in health‑insurance costs driven by recent claims trends, a 3% transportation cost increase, a $300,000 budgetary reserve, and a placeholder for new debt service tied to the planned middle school project. Mirabelli said the preliminary budget "does not have any bearing on taxes right now" and is intended to give the board more time to review options and to preserve the ability to apply for referendum exceptions.

Mirabelli explained the special‑education calculation: "our cost as calculated specifically by PDE ... increased by $625,000," and that the PDE methodology yields the $224,003.61 figure listed in the preliminary documents. He also told the board that, "on a budget to budget basis from 24-25 to 25-26, overall increase in health insurances on a budget basis is about $1,450,000." Those assumptions will be refined as the district receives updated state revenue guidance and final actuarial/claims data.

Finance committee chair Missus Karam (role not specified) summarized recent committee work on the district's long‑range capital needs, saying the committee had reviewed multiple bond‑financing scenarios with advisors from PNC Bank and PFM. Karam told the board the advisors were preparing additional scenarios that factor capitalized interest and capital reserve funds, and that the committee had discussed risk tolerances, timing and the potential effect of market conditions on borrowing.

Mirabelli said a practical limit on the district's ability to use investment earnings to offset debt costs stems from bond‑construction rules: interest earned on bond proceeds must remain in the construction account and cannot be used for operating expenses. "Any interest earned there stays over for projects ... and it can't be used to come back ... to pay salaries, things like that," he said.

Mirabelli also reported a preliminary increase in taxable assessed value from the county of 0.87%, which he said is higher than the district's forecasted 0.45% and would incrementally help revenue if it holds when the county finalizes assessments.

Board members asked clarifying questions about the calculation inputs and the timeline for Act 1 exceptions. One board member asked whether the $1,450,000 health‑insurance estimate was incremental compared with last year; Mirabelli responded that the figure represents an incremental increase and that the rough year‑over‑year change is about 20% based on preliminary claims data.

The board voted unanimously, 9-0, to approve the preliminary 2025-26 general fund budget and begin the public‑notice period needed to pursue referendum exceptions if it chooses to do so later. Mirabelli and administration members said the vote does not set a final tax rate; that decision remains for the June budget vote after additional data and any PDE responses on exceptions are received.

The board's action starts an advertising and application sequence under Act 1 rules: if the board advertises the preliminary budget, a 10‑day public notice period begins and administration can file a formal referendum‑exception application with PDE. PDE may then request additional documentation before ruling.

The district will continue refining assumptions, including health‑insurance claims, salary step/column moves, final assessed values, and debt‑service estimates tied to the middle‑school plan. Administration said it will return with updated scenarios and supporting analytics throughout the spring budget cycle.