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Bermudian Springs board leans toward presenting preliminary budget at Act 1 index amid member concerns
Summary
After Justin presented updated revenue and expenditure estimates, board members debated showing the preliminary budget at the Act 1 index (5.4%) versus a lower option; the majority signaled support to present at the Act 1 ceiling with the option to reduce before final adoption in June.
Justin presented updated financial estimates and multi-year fund-balance projections under several millage scenarios, saying current-year estimates show revenue exceeding expenditures by $55,709 and that a retirement-reimbursement increase of $259,979 improves the district’s near-term outlook.
"The current year estimates show revenue exceeding expenditures by that amount there of $55,709," Justin said during his presentation of the fund-balance analysis, which included modeled impacts for the Act 1 index (5.4%), 3.6%, 1.8% and 0% options.
Board members then discussed guidance for the preliminary budget. One board member stated bluntly, "I'm not for the 5.4," arguing that posting the 5.4 ceiling on the preliminary budget could alarm taxpayers and that the board should show a lower number (a 3.6% option was suggested). Another member urged education for the public on the process, pointing out that the preliminary budget provides flexibility to reduce but not increase millage before the final vote.
A longer intervention framed the constraint as a state funding problem: the board heard that Pennsylvania is not funding districts at constitutional levels and that local tax decisions are driven by fixed obligations such as special education and transportation costs. "We are currently funded at 38 to 40 [percent]," the speaker said, arguing that insufficient state funding forces heavier local tax reliance.
After discussion, the chair indicated the majority of the board favored giving Justin direction to present the preliminary budget using the Act 1 index as the ceiling with the option to reduce it before the June final adoption. Justin confirmed he will incorporate the board's direction and return with the preliminary budget and additional context (including homestead/farmstead reimbursement details) prior to the June vote.
Administratively, the board emphasized the 30-day public notice requirement for preliminary budgets and that the millage printed on tax bills will reflect the June final vote, not the preliminary May presentation.
Next steps: Justin will present the preliminary budget at the May meeting with the modeling and proposed guidance the board requested; the board may adjust the millage prior to final adoption in June.
