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Avon Grove presents early 2026-27 revenue outlook; board hears preliminary 4% tax projection
Summary
Budget staff presented a preliminary 2026-27 revenue overview: recognizing roughly $703,000 of a proposed state increase, adjusting expenses, and planning around a draft 4% real-estate tax recommendation; board members raised concerns about enrollment decline, maintenance cuts and seniors on fixed incomes.
The Avon Grove School District's finance staff opened a five-part budget series with a revenue overview that framed next steps in the district's 2026-27 budget process and previewed a tentative 4% real-estate tax recommendation.
"We're still fairly early on in the budget process," Eric Willie told the board as he laid out the revenue and early-expenditure adjustments. He said Governor Shapiro's 2026-27 proposal would increase K-12 funding substantially but the district was taking a cautious approach and preliminarily is recognizing about $703,000 of the estimated $2.1 million proposal tied to the district share.
Willie described several expense adjustments since the January presentation: about $190,000 to meet special-education needs (including specialized nursing services), a $14,000 replacement for an end-of-life diesel fuel-pump control system used for bus fueling, and other smaller changes that together reduced the projected use of fund balance from about $8.7 million to just over $8.1 million under the draft spending plan.
On the revenue side, Willie said local revenues are roughly 65% of total revenues and property taxes account for about 61% of revenue. The Homestead/Farmstead relief allocation is certified in April and will be incorporated into the budget once the state provides the amount in May.
Willie walked the board through assessment trends and explained Act 1 mechanics and the adjusted Act 1 index that provides districts with limited flexibility when they lack a large commercial tax base. He said the adjusted metrics are part of why the recommended 4% draft increase sits above the current base index of 3.5%.
He also warned of state-level uncertainty: the governor's proposal would require a large draw from Pennsylvania's Budget Stabilization Fund (the rainy-day fund) and it is possible a final state budget could be delayed; because of that risk the district is conservative in recognizing any proposed increase.
Board members pressed for detail on where reductions would be made, questioned raising taxes while enrollment is declining (one member said the district is down "283 students" over recent years), and expressed concern for older residents on fixed incomes. Several board members urged deeper examination of staffing and program choices before finalizing a millage recommendation.
Willie and district leaders said further expenditure reviews, departmental meetings and scenario work will continue; the budget schedule calls for a proposed-final presentation in April and final adoption in June.
