Upper Dublin School District administrators on Nov. 19 presented a preliminary 2026–27 budget that currently shows roughly $127.4 million in projected revenue against about $130.4 million in projected spending, leaving a near‑term gap of about $3 million that staff say is manageable over a multi‑year plan.

Andy Lekman (finance staff) told the committee the administration recommends advancing an Act 1 "opt‑out" resolution that would keep the district at or below the state Act 1 index of 3.5% (the index that constrains most property tax increases). "The recommendation of the administration would be, to move forward with the opt out resolution," he said, adding the preliminary budget includes a $3 million planned transfer to the capital reserve that contributes to the projected deficit.

Lekman said last year’s unaudited results show about a $5.3 million operational surplus, but noted $1.4 million of that was a one‑time Inflation Reduction Act reimbursement already allocated to the elementary furniture project. He said the district has set aside fund balance to smooth projected deficits over a three‑to‑five‑year horizon and to avoid abrupt impacts to services when future debt service comes due.

Committee members pressed staff on specific drivers of the deficit and longer‑term liability pressures. Doctor Smith (Superintendent) and staff said personnel costs make up about 73% of the budget and are expected to rise roughly $4.4 million based on bargaining agreements and projected staffing needs; PSERS (the state retirement system) employer costs were also cited as a major long‑term pressure. Special education costs were highlighted as a significant upward driver over the last decade: the district’s count of students with IEPs rose from 681 to 855 over four years and special education spending has increased by roughly $10 million over a ten‑year span.

Assessment appeals also featured in the discussion. Lekman said the district saw multiple commercial and residential appeals and that interim assessments tied to a large commercial parcel accounted for roughly $400,000 in billed interim assessments; he added that approximately $1.2 million in reductions from Board of Assessment decisions are already reflected. Because appeals can proceed to further review and sometimes to court, Lekman warned the process and fiscal impact can extend for years.

Several committee members voiced support for moving the opt‑out resolution forward to the legislative meeting for a formal vote; no formal vote was recorded at this finance committee meeting. Staff will return more detailed budget materials as the audit completes and as departments refine staffing and program projections.