Pottsgrove School District presents $83.4 million preliminary budget; balancing gap would exceed Act 1 index

Ron Linke, presenting the Pottsgrove School District—s preliminary 2025-26 budget, told the board the district currently estimates about $78.2 million in revenues and roughly $83.4 million in expenditures, leaving an initial deficit just over $4 million and a budget gap that would require an estimated tax increase above the Act 1 index to close.

"If we wanted to balance this budget today, that would require a 9.9% or 9 point almost 9.1% tax increase, which we cannot do since the limit is 5.3," Ron Linke said, describing the district—s current calculation and the board—s earlier action to opt not to exceed the Act 1 index.

Linke said the revenue estimate includes roughly 51% from local taxes, 25% from the state and about $1 million from federal sources, and that real-estate tax revenue is rising because assessed values increased. He identified a $2.9 million overall increase in revenues versus the prior budget and highlighted specific revenue changes: about $720,000 in higher real-estate tax receipts due to assessments, $400,000 from increased earned-income tax revenue and a $272,000 increase in the Basic Education subsidy estimate.

On the expenditure side, Linke detailed $7.1 million of new or increased budget items that make up the rise in spending: requests for new staff (including four special-education teachers and two instructional assistants at about $610,000 total), charter-school tuitions rising by about $640,000, $856,000 of prioritized facilities maintenance requests, increased substitute-teacher costs, transportation-vehicle inflation, and rising costs for special-education outplacements and services (about $680,000). Linke also listed a planned transfer to the capital reserve as a new or increased item.

Charter costs were a recurring focus. Linke said the district currently had about 82 students attending charter schools and used estimated tuition rates for next year: roughly $15,000 for a regular-ed charter student, $45,082 for a special-ed student in a brick-and-mortar charter and about $36,142 for a special-ed student in a cyber charter. He said those tuition-rate changes, plus head-count and other factors, contributed to the $640,000 projected increase in the charter tuition line.

Linke described next steps and timing: the Facilities and Operations Committee will review facilities and transportation details on April 8; the district must post the proposed budget at least 30 days before the final vote, and administration is targeting a final budget vote on June 10.

During the meeting the board handled several routine but formal actions. Motions made and approved included: receiving accounts for audit (Item 6.1), approving the treasurer—s report (7.1), multiple personnel appointments and resignations (Items 8.1—8.8), purchasing four 72-passenger school buses (Item 9.1) and renewing the EdOptions Academy agreement (Item 10.1). Board members discussed the bus purchase in committee and stated the purchase was needed to replace inoperative vehicles and maintain student transportation.

The presentation and subsequent exchanges made clear the district must revise its draft budget to bring projections in line with the legal Act 1 tax limit and board policy. Linke said administration will refine salary and benefits detail and rework lower-priority facilities items to reduce the projected deficit.

No board vote on the 2025-26 tax rate or final budget occurred at the meeting. Board members urged residents to follow committee meetings and to offer feedback at the public Facilities and Operations Committee meeting scheduled in two weeks.