Penn Manor board directs administration to present a 3.5% tax‑increase option for May 19 vote

Penn Manor School Board members directed district administration on May 5 to prepare a proposed final budget that reflects a 3.5% property‑tax increase for presentation on the board’s May 19 voting agenda.

Business officer updates presented by Mr. Forney showed multi‑year projections in which the district’s fund balance as a percentage of revenues declines under current assumptions. Several directors and outside advisers warned that a falling fund‑balance percentage could prompt questions from credit‑rating agencies and push up borrowing costs for future capital projects.

Board members debated alternatives — including a smaller increase, cuts to non‑student facing spending, or a phased approach — and asked administration to model multiple scenarios. Mr. Forney said the recommended scenario includes placing almost all the tax increase into capital reserves to build capacity for future projects and bond payments.

Board President Joseph G. Fullerton moved and the board seconded a motion to direct administration to present a budget incorporating a 3.5% tax increase. The transcript records a roll call of 5 in favor, 3 opposed and 1 absent; the board adopted the motion to include a 3.5% figure on the May 19 agenda for further consideration.

Directors asked the administration to supply clearer, "all‑in" cost assumptions (including benefits and payroll taxes), options for targeted cuts that avoid student‑facing services, and updated fund‑balance projections that incorporate recent state funding increases and one‑time receipts before the final vote.

Next steps: administration will return on May 19 with a proposed final budget that includes the 3.5% scenario and alternative scenarios with their projected impacts to fund balance and debt capacity.