Abington Heights board reviews middle school financing plan, FY26 budget shortfall and student plea for more music staffing

Abington Heights School District officials described a phased financing plan for the proposed middle school project and presented a FY26 preliminary budget that shows a $1,480,000 shortfall, while students urged the board to hire additional middle‑school music staff.

At the June 4 meeting, Jim, a staff member in the district finance team, told the board that the middle school project would be financed in phases and would use a combination of bond borrowing and district reserve funds. "We have assigned and committed fund balance. $7,500,000 of that fund balance in the general fund is committed for capital projects," Jim said, noting the district also maintains a capital reserve fund the board can draw down later in the project cycle.

The business-office presentation followed public comment from Ayla Holgate, a graduating student and current band president, who said the band program has grown but lacks adequate middle‑school staffing. "We urge you to take this into consideration when hiring a new music teacher for our middle school," Holgate said, and said the student petition supporting more music staffing had "over 200 signatures." She described current scheduling limits and class sizes that leave some students unable to participate.

Why it matters: district officials said the financing choices and state budget actions will affect tax rates, staffing and timing for construction. The FY26 budget presentation flagged a large, mandatory increase in health-insurance costs as the primary driver of the projected deficit and highlighted revenue and timing items that could narrow the gap.

Budget highlights and assumptions - Preliminary deficit: $1,480,000 (down from a $1,900,000 deficit reported in January). The presentation said the change reflects updated revenue and expense reconciliations using integrated HR and accounting systems. - Health insurance: staff reported an approximate $1,450,000 projected increase in district health‑insurance costs, which the budget assumes and does not yet offset with cost‑containment measures. - Capital reserves and debt: the budget includes $7.5 million of general‑fund committed balance for capital projects and a separate capital reserve. Staff said $625,000 was set aside for additional debt service timing and the board also maintains a $200,000 budgetary reserve. - Potential state aid: the district said it has not yet budgeted for any additional Ready to Learn block grant funds; if awarded as proposed by the governor, that grant would add an estimated $563,000 to the district. Officials cautioned that the state budget is not final and that Abington Heights typically budgets conservatively. - Local revenues: staff reported upward revisions to earned income tax, real‑estate transfer tax and delinquent‑tax estimates based on recent trends; gaming revenues were also noted as increased. - Taxes: the proposed budget incorporates a 4.7% tax increase that staff said would equal about $140 on the average property; a state property tax reduction allocation would reduce that by about $32 per average property, according to the presentation.

Board and staff discussion Board members asked about timing and sequencing of bond borrowings, interest‑rate risk and how capital draws will align with construction schedules. Jim and another finance staff member said the district is awaiting final interest and projection numbers from financial advisors (PFM and PNC) and that the district prefers flexibility: borrow when market conditions minimize taxpayer burden and draw capital reserves as construction progresses.

Superintendent remarks and state policy context The superintendent reiterated engagement with state and federal legislators about facility reimbursements and charter funding reform. She described the Ready to Learn block grant and ongoing charter‑tuition formula issues, saying changes at the state level can materially affect the district's net fiscal position. The superintendent described the current charter formula as a recurring budget pressure and said that if proposed charter reforms and block‑grant funding become law the district could see a substantial reduction in the FY26 deficit.

Music staffing and program growth During public comment, Holgate described rapid growth in the marching band from 36 to roughly 120 members and said current staffing leaves some middle‑school students without access to band because of limited periods and large class sizes (one class reportedly had about 40 students). District staff confirmed a middle‑school general‑music position was on the night’s personnel agenda; the personnel report, which included that hire, passed on a roll call vote (see "Votes at a glance"). District staff said scheduling changes and a review committee have considered rotations and senior‑privilege scheduling to increase students' ability to take music and other courses.

What happens next Finance staff said they will present updated 10‑year projections and interest‑rate scenarios when PFM/PNC deliver final numbers. The board will adopt a final FY26 budget at its next meeting; staff emphasized that state budget actions between now and adoption could change the district’s final numbers.

Ending Board members and staff thanked the student speakers and said staffing and capital planning will continue to be monitored closely as projections are finalized and additional state information becomes available.