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North Penn committee votes to advance resolution to stay at or below Pennsylvania Act 1 index
Summary
The finance committee voted to advance a resolution declaring the district will not exceed the Act 1 index for the coming budget cycle, deferring a preliminary budget and any exception requests while monitoring state and federal budget developments.
The North Penn School District Finance Committee voted to place a resolution on a future meeting agenda stating the district will not exceed the Pennsylvania Act 1 index for the coming tax year.
Tara Hauser, chief financial officer for North Penn School District, told the committee that under Pennsylvania rules the district must produce a preliminary budget by December if it intends to seek an exception (for example, a special education exception) to the Act 1 index. "What I am proposing, is that we pass the resolution not to exceed the act 1 index this year," Hauser said, explaining that passing the resolution lets the district forego preparing a preliminary December budget and proceed to the normal proposed-final-final schedule in the spring.
The committee discussed uncertainties in state and federal budgets and how delayed funding could affect special education reimbursements. Board Director Stoll asked about potential special education costs and timing of federal funds; Hauser estimated a likely special education exception would be in the neighborhood of $2.5 million to $3.5 million. Committee members agreed the district should continue to monitor state and federal budget developments and that administration would prepare further estimates before the next full work session so the board could revisit the decision if conditions change.
A motion to move the resolution forward for further consideration was made by Board Director Resch and seconded by Board Director Stoll. The committee voted in favor; the motion carried.
Hauser said that if the budget situation looked dire before the board’s December meeting, the administration would prepare a preliminary budget and follow the statutory advertising and hearing steps required under Pennsylvania law. She also agreed to provide a breakdown of special education funding by federal and state sources when preparing the more detailed estimate.
The committee did not take final budget action on the resolution at the meeting; it advanced the item to a later agenda for work session/action and will track incoming state and federal budget information ahead of that meeting.
