Methacton board approves preliminary 2025–26 budget, authorizes special‑education exception with 5.1% tax increase

The Methacton School District Board of Directors approved a preliminary 2025–26 budget and authorized administrators to apply for an Act 1 special‑education referendum exception at a special meeting Feb. 18. The board recorded a 7–2 vote to adopt the preliminary budget package, which shows total expenditures of $139,804,158, projected revenues of $138,710,884 and a planned use of fund balance of $1,093,274.

The district advertised the preliminary budget on the Pennsylvania Department of Education (PDE) form (PDE‑2028) and, if finalized in this form, would require a 5.1% increase in the tax rate. The motion also directs the administration to apply for a special‑education referendum exception under Act 1, which allows the district to exceed the Act 1 index for specified costs.

Why this matters: The preliminary budget is the public‑facing document required by state law for the next budget cycle and starts a 20‑day public posting period. Approval of this preliminary budget does not finalize tax rates or the final budget, but it authorizes the district to seek the special‑education exception and to continue budget work over the coming months.

Details from the meeting - Budget totals: expenditures $139,804,158; revenues $138,710,884; use of fund balance $1,093,274 (listed in the presentation by the director of business services). The proposal shown to the board would exceed the Act 1 index (currently cited in the meeting as about 4%) and is advertised at 5.1% after earlier drafts showed a 6.3% increase. - Fund balance: District staff said the advertisement used a temporary draw on fund balance to close the gap between revenues at 5.1% and the higher revenue needed under earlier projections. Administration described that the use of fund balance in the preliminary filing is not necessarily permanent and that ongoing work — including health‑care and revenue assumption adjustments — could reduce or eliminate the drawdown before the final budget.

Public comment and board reaction Several residents pressed the board to reject the advertised budget or provide greater detail on how the gap would be closed. - “This budget should be rejected because it contains a $1,100,000 plug,” a resident identified in the record as Bridal Urshalla said during public comment, criticizing the lack of specific reductions or actions to close the shortfall. - Other commenters asked why the administration and board had moved from an early 6.3% draft to the advertised 5.1% and asked for the financial analysis underlying that decision.

Board members and staff said work remains. The director of business services reported that the earlier draft required a 6.3% increase, and that the board had directed advertising at no more than 5.1%. Board members and the director described several areas under review — including state revenue assumptions, reduced medical costs, and other line‑item changes discussed in finance committee — that have produced identified savings of several hundred thousand dollars but that some changes could not be reflected in the posted preliminary form because of the 20‑day posting deadline.

Vote and next steps A motion to approve the preliminary budget and authorize the administration to apply for the Act 1 special‑education referendum exception passed 7–2. The administration said it will continue working with the finance committee and return updated numbers and more detailed line‑by‑line forecasts for subsequent meetings; the board asked for periodic finance updates and a specific schedule of budget presentations to the full board in coming weeks.

What the action does not do The vote approved the preliminary budget for posting and permitted the administration to file for a special‑education exception under Act 1. It did not adopt a final budget or set a final tax rate. Board members and staff repeatedly emphasized that further reductions and program‑level prioritization remain under active review and that administration intends to bring updates to the board before final adoption.

Provenance: The budget presentation, public comments, and the motion and vote are recorded in the Feb. 18 special meeting and associated work session (presentation by the director of business services; public comment and the board vote).