Spring-Ford board adopts preliminary general fund figures, OKs applying for Act 1 referendum exception

The Spring-Ford Area School District board of school directors on Jan. 21 adopted a proposed preliminary general fund and unanimously approved applying for a 2025–26 Act 1 referendum exception as part of its budget timeline.

The preliminary-general-fund matter was introduced at the work session as a time-sensitive, Act 1–driven step; a board member moved the adoption and the board voted in favor. The board then voted to authorize staff to apply for a referendum exception for 2025–26 under the Act 1 process. "The referendum exceptions are a pathway ... to, if the board wishes to go over the index of 4% ... currently, the only exceptions that the district is qualified for are the special ed exceptions to the Act 1 index," district staff member Mr. Kim said.

Why it matters: Act 1 of the Pennsylvania Public School Code sets an inflation-based index and procedures districts use to set property-tax increases. Applying for an exception preserves the district’s option to raise revenue above the index if the board later decides to pursue that route for 2025–26; it does not itself change tax rates. Finance staff said the schedule for adopting preliminary numbers is timeline driven and must be completed now to preserve options.

In the finance committee report presented at the same meeting, district finance staff reported liquidity and several revenue indicators. Committee chair Mrs. Westwood summarized that the district had roughly $140.7 million in cash on hand year to date, similar to the prior year’s level, and that most revenues were on plan with timing differences. The board heard that earned-income tax receipts were about 3.8% higher than the prior year and that food service had served about 356,000 meals to date.

The committee also flagged health-insurance spending as an area of concern. Finance staff said the district’s self-funded health insurance was about $1 million over budget year to date; committee members noted prior one-time state funding that has helped cover shortfalls but emphasized the challenge of ongoing costs versus one-time funds. Committee members said they are evaluating options, including the possibility of an employee health clinic, as a long-term strategy.

The board made both votes without recorded opposition. The meeting transcript records the motions and the roll-call outcome as seven in favor, none opposed. No mover or seconder names were specified in the record for the motions at the work session.