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Committee affirms Act 1 tax cap, adopts 2025 IRS mileage rate and OKs IU consultation; GPS rollout and debt analysis planned

2101550 · January 10, 2025
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Summary

The finance committee said the district will remain under Pennsylvania's Act 1 index (4%) for 2025-26, adopted the IRS mileage rate of $0.70 per mile, and approved a Bucks County Intermediate Unit consulting agreement with out-of-pocket costs estimated at about $3,000 and capped at $5,000.

The finance committee addressed several procedural and planning items important to the 2025-26 budget cycle and district operations.

Act 1 index and taxes: Anthony Rapp explained the Act 1 index's role in setting Pennsylvania school-district tax limits and said the index for 2025-26 is 4 percent. The committee agreed there is no interest in exceeding the Act 1 index, so the district will plan its preliminary budget to remain at or below a 4 percent tax increase unless it pursues voter referendum or statutory exceptions.

IRS mileage: The committee adopted the Internal Revenue Service mileage reimbursement rate change (effective Jan. 1, 2025) of $0.70 per mile, up from $0.67. Board policy uses the federal reimbursement rate; the committee approved aligning with the IRS rate for staff travel reimbursements.

Agreement with Bucks County Intermediate Unit (IU): The committee reviewed an agreement for consultation services to assist in selecting a director of special services. The IU's out-of-pocket costs for advertising and similar expenses were estimated at about $3,000 and will not exceed $5,000. The committee accepted the agreement terms and that the district would cover out-of-pocket expenses within that cap.

Transportation technology and vendor engagement: Members asked about the bus-driver GPS rollout and reporting. Administration said the system rollout encountered delivery problems but is expected to report next month and will improve notifications to parents about late buses and substitute drivers. The committee said administration met with the transportation contractor (Durham) and scheduled a follow-up meeting with senior management to address call-out and notification issues.

Facilities financing and debt analysis: In response to a board member question, administration said it is engaging PFM to prepare ballpark debt-capacity estimates to inform possible borrowing for facilities projects, noting structure and timing affect capacity. The administration expects to present that information at the next facilities meeting, barring complications.