Tredyffrin‑Easttown board adopts preliminary 2026‑27 budget, authorizes Act 1 exception filings
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Summary
The Tredyffrin‑Easttown School Board on Jan. 28 adopted a preliminary 2026‑27 budget and authorized administration to seek Act 1 referendum exceptions after hearing a presentation from business manager Art McDonald that outlined a projected $7.7 million deficit and rising special‑education and debt‑service costs.
Tredyffrin‑Easttown School Board on Jan. 28 adopted a preliminary budget for the 2026–27 school year and authorized district staff to file for Act 1 referendum exceptions with the Pennsylvania Department of Education.
Business manager Art McDonald presented the proposal and told the board this is an early look at the numbers needed to meet the state timeline. He said the district is proceeding under “option 1,” which allows the administration to submit a preliminary budget and pursue exceptions to the Act 1 index. McDonald described a budget picture that, under current estimates, shows approximately a $7.7 million gap between anticipated revenue and spending that would be covered with fund balance under the current assumptions.
McDonald identified several drivers of the shortfall: an estimated $4.1 million increase in special‑education costs, additional debt‑service tied to a projected bond borrowing and projected decreases in property‑tax revenue due to assessment appeals. He explained how Act 1 exceptions work in practice, saying the special‑education and PSERS (Pennsylvania State Employees Retirement System) exceptions are calculated as “look‑back” adjustments using audited prior‑year expenses and then applied to the millage calculation.
Board members asked clarifying questions about the special‑education exception calculation and contingency planning. President Tidi noted the timeline for the budget process, and McDonald highlighted key dates, including budget workshops in March and April and final adoption in June. He also said the district has committed contingency and contingency funding in the fund balance to manage potential shortfalls.
After discussion, the board moved and seconded a resolution to adopt the preliminary budget and to authorize administration to pursue Act 1 exceptions. Art McDonald conducted a roll call in which each member voted in favor; President Tidi announced the motion passed 8 to 0.
What happens next: The administration will prepare and file required paperwork with PDE to determine eligibility for Act 1 exceptions, hold the scheduled budget workshops on March 9 and April 13, and present a proposed final budget in April and a final adoption vote in June.