Avon Grove presents preliminary 2025–26 budget: $121.5M plan, 3% tax increase proposed; fund balance projected to fall

Avon Grove School District presented a first look at its 2025–26 preliminary budget on Jan. 14, showing a proposed total budget of $121,493,482, projected revenues of roughly $113 million, a planned use of about $8 million of fund balance, and a recommended preliminary tax increase of 3 percent.

Dan (finance staff) reviewed fiscal years and variances from 2023–24 and explained drivers for the district’s current projection. He said 2023–24 revenues came in higher than budget due in part to recognition of previously deferred property tax revenue tied to a court decision affecting a hospital tax protest; a repricing of interest earnings; and stronger state education funding. “We recognize we are able to recognize in the past financial, in 23, 24, $1,600,000 of revenue that had been deferred,” Dan said, describing a Supreme Court of Pennsylvania decision that allowed the district to recognize disputed revenue from Generalsville Hospital.

Why it matters: The preliminary budget projects a decline in the district’s general‑fund balance from recent highs as the district uses reserves to cover operating needs and planned…