Souderton board adopts balanced $159.8 million budget, raises millage 3.95%

The Souderton Area School District Board of Directors on Wednesday approved a $159,785,442 final general fund budget for the 2025–26 school year that includes a 3.95% millage increase.

Board members and district staff said the budget is balanced and designed to avoid program cuts and layoffs while addressing rising special-education costs and other increases that the district said it cannot absorb without raising taxes.

District staff presenter Mr. Taylor said the district balanced the budget after adjusting revenues and expenditures and noted several major line-item changes: instruction regular programs increased by about $2.4 million (a 3.97% change), special-education programming rose by roughly $2.9 million (about 9.6%), student transportation increased by $586,000 (6.49%), and debt service fell by nearly $2.5 million (a roughly 23% decrease). The budget includes an internal transfer to capital reserve of $800,000, reduced from a previously proposed $1 million.

"We did it with a balanced budget," Board member Mr. Keith said during the presentation, thanking the finance team for its work. Taylor told the board the district set the final millage at 35.8249 mills and used a median assessed homestead value of $158,840 to illustrate the tax impact. After accounting for an increase in the homestead exclusion to $338.15, the presentation showed a face-value increase of about $186.60 on the median home and an effective tax-rate increase of 3.61% for that example.

Board discussion emphasized the pressure of state funding and special-education costs. "It's not the responsibility of the local taxpayers to foot that bill anymore," Board member Mr. Braun said, pressing the board's view that the legislature should increase state funding. Several board members urged residents to contact state legislators; one board member said they were voting for the budget despite reservations so the district would not be left without an approved spending plan.

The budget was approved following a roll-call vote; Board member Ms. Wheeler recorded a "no" vote during the roll call and the motion carried.

The board also adopted the district's homestead and farmstead resolution tied to the budget and approved district depositories as separate votes later in the meeting.

Why it matters: The budget funds operations, classrooms, programs and special-education services for the coming school year and directly affects local property tax bills. The board signaled the district will continue to press state lawmakers for increased funding to offset mandated costs.

What to watch: District staff said rising special-education needs will remain a pressure point for future budgets and the board signaled potential advocacy at the state level to secure more aid.