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West Chester Area SD committee, board agree to stay within Act 1 tax index for 2025–26 budget
Summary
District finance staff told the Property & Finance Committee that updated AFR numbers qualify the district for about $1 million in special‑education Act 1 exceptions, but administrators recommended limiting the 2025–26 tax increase to the Act 1 inflation index (4.0%). The committee and full board voted to adopt the 4% index commitment.
The West Chester Area School District’s Property & Finance Committee and the full school board voted this month to limit the 2025–26 tax increase to no more than the state Act 1 inflation index of 4.0%.
John Scully, speaking to the committee on Dec. 9, said the district’s Annual Financial Report (AFR) shows the district now qualifies for “a little over $1,000,000 in exceptions” tied to increases in special‑education costs. Despite that qualification, Scully said the administration recommends not applying for Act 1 exceptions and instead committing to the Act 1 index for the 2025–26 budget.
The recommendation gives the board two formal options when they approve their resolutions: (1) file for Act 1 exceptions that would allow tax increases above the index, or (2) commit to a tax increase no higher than the Act 1 index (4.0 percent). The Property & Finance Committee voted at the committee meeting to proceed with option 2; the board later voted to approve the Act 1 inflation index budget limit resolution at the full meeting.
Scully explained the special‑education exception arises from year‑to‑year changes in AFR figures: once the AFR is finalized, the district qualifies for the special‑education exception amount. He said he had previously advised the board that the district likely would not qualify, then corrected that statement after AFR numbers were complete.
Board members asked no substantive questions in committee after Scully’s presentation and the committee chair framed the vote as a recommendation to move the chosen option to the full board for final action. At the full board meeting, a motion to approve waiving a higher tax increase beyond the 4.0% Act 1 index passed with the board’s affirmative voice vote.
What this means for the 2025–26 tax levy is that the district is committing to a ceiling equal to the Act 1 inflation index unless the board later chooses to change course and formally file for exceptions through the Pennsylvania process. The administration said it believes the 2025–26 budget can be balanced within that limit.
The board’s action is procedural authorization required by state law when a district’s regular meeting and the property/finance committee coincide on the same night; the committee’s vote served to place the recommended resolution on the board agenda.
