Avon Grove adopts $120.7 million 2025–26 budget, approves 36‑mill tax rate after 6‑3 vote

The Avon Grove School District Board of School Directors voted 6–3 on May 22 to adopt a $120,710,249 general fund budget for the 2025–26 fiscal year and to levy a 36‑mill real‑estate tax, equivalent to $36 per $1,000 of assessed value, effective July 1, 2025.

The meeting’s most contentious item was an unsuccessful motion to amend the advertised budget and reduce the proposed 3% tax increase to 2.5%. A board member moved the amendment, citing the district’s stronger‑than‑expected reserves and a recent capital‑project bid that came in roughly $900,000 under estimate on an HVAC job. The amendment failed in a roll call vote, 3–6, and the board then proceeded to a roll call on the main budget motion, which passed 6–3.

Supporters of the amendment argued the district’s projected year‑end reserves—now expected to be about $30.2 million—and the one‑time capital savings provided room to modestly lower the tax impact on households. The motion’s backer noted that reducing the rate from 3% to 2.5% would lower taxpayer burden by about $350,000 while keeping reserves at a level they described as fiscally responsible.

Opponents cautioned that the apparent savings were largely one‑time and that revenue streams such as transfer taxes and interest income have been volatile since the pandemic. The district’s finance staff warned that healthcare claims are rising sharply—a roughly $1.3 million increase in medical claims is included in the 2025–26 budget—and that relying on temporary revenue gains to fund ongoing costs could create pressure in future years. The business office and finance staff urged prudence given uncertainty about federal and state funding and upcoming contract negotiations.

After debate on the amendment and the main motion, the board approved the budget by a 6–3 vote; the related motion to set the 2025–26 school real‑estate tax at 36 mills likewise passed 6–3. A separate resolution to adopt the Homestead and Farmstead exclusion passed unanimously, 9–0.

Board counsel explained the process before the amendment vote, noting that changing the advertised budget requires an absolute majority. Several board members said they supported the budget’s spending priorities for students while differing on the acceptable millage increase.

The superintendent and finance staff said the budget will be submitted to the Pennsylvania Department of Education and covers the fiscal year beginning July 1, 2025. The board did not adopt any additional tax refunds or direct rebates for individual taxpayers; the business office noted that committing fund balance to reduce future millage is more administratively straightforward than attempting to refund individual tax bills.

Next steps: the district will finalize administrative actions associated with the new budget and implement the adopted tax rate beginning in the new fiscal year.