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Unionville-Chadds Ford finance team outlines tight budget outlook; health‑care costs pose challenge
Summary
Finance staff briefed the board on a proposed Act 1 opt‑out resolution to keep the 2026‑27 budget within a 3.5% index, presented stable enrollment projections and warned that a first‑look medical projection of about 8.86% would significantly strain the budget if realized.
The district’s finance team told the board Jan. 12 that next year’s proposed budget will likely be framed to stay within the Act 1 index of 3.5% and that the board will consider an opt‑out resolution next week to formalize that commitment.
“Mister Schartz” introduced the finance update and turned to finance staff for details. Finance director Mister Dady reported enrollment trends that remain relatively flat (third‑day 2526 enrollment at 3,586) and noted a small, favorable change to the PSERS employer contribution rate (certified at 33.59% for 2627), which he described as budget‑positive compared with earlier projections.
On health care, Dady said a first‑look projection shows claims trending up and estimated an 8.86% increase in medical claims for the next plan year. "8.86 percent as a first look projection for next year's claims is a lot more positive than we've been the past couple years," he said, but added that "8.86 is still more than double 3.5% Act 1 index." Board members stressed that rising health‑care costs are unsustainable if left unchecked and asked staff to continue exploring cost‑containment strategies including potential cooperative purchasing options in Delaware County.
Dady also said the district has begun an RFP process to re‑bid audit services after a three‑year engagement ended; proposals will be returned in February with a recommendation in March.
The board was told that passing the Act 1 opt‑out resolution narrows the preliminary budget numbers and avoids an artificially inflated proposed preliminary budget that can alarm community members; the resolution would commit the board to keeping the final budget within the 3.5% index unless exceptions or a referendum are pursued.
Next steps: staff will continue budget modeling ahead of the March and May budget hearings, provide updated health‑care claims data and explore co‑op options; the Act 1 opt‑out resolution and further budget detail are on the agenda for the regular Jan. 20 meeting.
