Unionville-Chadds Ford proposed 2025-26 budget: $108.4 million, small planned deficit and 3.92% weighted tax increase

The Unionville-Chadds Ford School District on May 5 presented a proposed final budget for fiscal year 2025-26 that forecasts $108.3 million in revenues and $108.4 million in expenditures, producing a budgeted deficit of about $61,000 and a projected weighted average tax increase of 3.92%.

The budget overview was delivered by Dr. Sanville, the district superintendent, and Joe Dady, finance staff, who said the proposed spending plan will be brought to the board for a vote at the June meeting. "This is our proposed final 20‑25, 20‑26 budget," Dr. Sanville said, adding the year‑over‑year budget increase of 2.44% is "increasing by less than inflation." Dady provided the line‑by‑line details.

Why it matters: the package would keep the district inside the state Act 1 framework and, according to district staff, below typical inflation measures while shifting more of the budget to fixed costs such as salaries, benefits and special education—areas that have driven increases across Pennsylvania districts.

Key numbers and drivers - Total revenues proposed: $108,300,000; total expenditures proposed: $108,400,000 (Dady). - Budgeted deficit (gap): approximately $61,000 (Dady). - Weighted average tax increase used in the draft: 3.92% (3.99% in Chester County; 3.66% in Delaware County), reflecting county assessment changes and reassessments (Dady). - Enrollment projection: roughly 3,800 students through 2033, a relatively flat forecast (Dr. Sanville). - Salaries and benefits account for about 74% of the budget; adding professional services and tuition raises the three largest categories to about 82% of spending; debt and remaining items bring the total to roughly 92% (Dady). - Debt service budgeted at about $9.9 million (roughly 9.2% of the budget next year) with no new debt assumed for any potential middle‑school project in the current proposal (Dady).

Staffing and program changes Dady said the 2025‑26 budget builds staffing to implement full‑day kindergarten. Professional staffing would increase from 340.8 full‑time‑equivalent (FTE) positions to 349.1 FTEs, driven by seven additional kindergarten teachers, about 1.4 special‑area elementary positions and 1.5 reading specialist FTEs. Support staff would grow by four kindergarten paraprofessional positions to implement full‑day K.

Full‑day kindergarten costs and funding Dady said the district expects the full‑day kindergarten program to net about $940,000 in costs overall. The 2024‑25 budget already included about $600,000; the 2025‑26 proposal adds roughly $340,000 (Dady described it as $415,000 of additional expenditures offset by about $74,000 of new revenue for a net $340,000).

Special education and benefits District staff described rising special‑education costs as a principal long‑term pressure. Total special‑education spending has grown from roughly $10.7 million in 2014‑15 to a projected $19.9 million in 2025‑26, with federal and state special‑education revenues rising only modestly in the same period, forcing a larger local share (Dady). The district also noted its PSERS (state pension) employer rate is set at about 34% for 2025‑26 under current projections, and medical costs remain a major driver of benefit increases.

Taxes and homeowner impact Dady walked the board through the district's multi‑county tax calculation. Because Unionville‑Chadds Ford spans Chester and Delaware counties, differences in county reassessments affect the split of revenue. District staff used the May assessments (a two‑year lag from DCED) to calculate the millage rates in the draft. The presentation showed how reassessments in Delaware County reduced assessed value there and lowered expected annual tax revenue by roughly $750,000 compared with prior expectations; that change contributed to the weighted 3.92% tax increase figure in the draft budget (Dady).

Fund balance, reserves and long‑range projections The district told the board it uses a policy target that sets a minimum unassigned general‑fund balance at 5% and observes the Pennsylvania School Code maximum of 8%. Under the proposed budget, projected unassigned fund balance is about $5.5 million — described as just above the 5% policy minimum (Dady). The presentation included a five‑year conservative projection showing a growing deficit trend under current assumptions and highlighted fund balance as an area for future board discussion.

Board discussion and questions Board members questioned revenue sensitivity to falling investment rates, the stability of state and federal grants, the potential effect of an earned‑income tax in East Marlborough Township, and the fiscal implications of a future middle‑school bond. "We have to have a strategy in place to build up that fund balance over time," one board member said, echoing repeated comments that the 5% policy level was a deliberate governance choice established in prior board discussions.

Other notes - Dady noted investment earnings have been a recent upside item; the district budgets $1.3 million for investment earnings in 2025‑26 and projects it may end the current year with roughly $2.0–$2.1 million in realized investment income. - The district acknowledged a large philanthropic grant (Longwood Foundation) that will help cover facilities improvements tied to full‑day kindergarten; board members thanked the foundation during discussion but Dady clarified the Longwood funds are separate from the general budget planning.

What happens next The board will consider approval of the proposed final budget at a work session and then vote on the final budget and millage rates at the regular June 16 board meeting. Dady repeatedly noted the proposed budget carries no new debt for a middle‑school project and that any borrowing for facilities would be reflected in future budgets and debt‑service projections.

Ending note Presenters emphasized that fixed costs—salaries, benefits and special education—dominate the district's budget and limit flexibility. Board members said they expect continued discussion in the coming months about fund‑balance targets and long‑term priorities before finalizing tax rates and the district's five‑year plan.