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Coatesville district previews 2025-26 budget; proposes 3.5% tax increase and flags charter special-education costs
Summary
Administrators presented a proposed 2025-26 budget showing a $10.6 million, or 4.6%, spending increase and a recommended 3.5% tax increase; the board was warned that charter-school special-education funding formulas are driving significant cost growth.
District finance staff presented projected expenditures for 2025-26 that would increase spending by about $10.6 million, or roughly 4.58% over the prior year, and recommended a 3.5% tax increase to help close a projected shortfall.
The presentation showed projected local revenue of approximately $155,000,000 — a figure that assumes the recommended 3.5% tax increase — and total projected revenue of $235,500,000. With current projections the district faces a roughly $6.5 million shortfall; administrators said use of fund balance remains a possibility and estimated an ending fund balance near $22,000,000 depending on final year-end results.
The presenter said the district had moved certain salary and benefits line items into the 800-series for open positions and noted a $2.6 million increase in salaries and benefits tied to that reallocation. Officials also attributed a major year-over-year federal funding decline to the expiration of ESSER (Elementary and Secondary School Emergency Relief) funds.
A central point in the discussion was charter school tuition and special-education funding. Presenters said the charter tuition formula requires districts to use an assumed special-education share of 16% when calculating charter tuition. Coatesville—s actual special-education share, the district said, is roughly 28.8%. Based on 2022 calculations presented to the board, administrators said the formula results in an overpayment of about $13,000 per special-education student placed in a charter school.
District staff cited a $5.5 million projected increase tied specifically to charter-school costs as a main driver of rising expenditures and said that while returning general-education students would bring revenue back, special-education placements can negate anticipated savings because out-of-district and charter special-education tuition and services are often more expensive.
Administrators summarized options for the board: adopt the proposed tax increase and use limited fund balance to cover a portion of the gap; prepare for further state budget unknowns; and continue local initiatives aimed at retaining and attracting students, including investments in libraries, social workers, and classroom supports. Officials said a public notice of intent to adopt the final budget will be posted May 31 and that the board will consider final adoption at a special meeting on June 10.
Board members and staff also said they are engaging state legislators about charter funding formulas but noted any change requires state-level action.
