Colonial School District previews 2025-26 budget; administration recommends 3.48% tax increase and $1 million fund-balance use

At a Jan. 13 meeting of the Colonial School District finance committee, district finance staff presented the first look at the proposed 2025-26 budget and recommended a 3.48% tax increase together with the use of $1,000,000 from the general fund balance to close the gap between projected revenues and expenditures.

The presentation showed the district's total general fund balance at about $27.8 million with an unassigned portion of $12,980,200 measured as of June 2024. District staff said Pennsylvania Department of Education rules limit unassigned general fund balances to 8% of the general fund; to comply, the administration recommended transferring $326,250 from the unassigned to the assigned fund balance, which would raise the assigned balance from about $4,000,000 to roughly $4,300,000.

The administration described the $1,000,000 use of fund balance as a budgeting challenge for department heads and principals: staff were asked to seek cost savings or additional revenues so the district would not ultimately draw the full $1,000,000. The recommendation as presented is a planning figure at this early stage; the…