East Penn presents preliminary 2026–27 budget; seeks $5M state grant for Lincoln Elementary and establishes tech stabilization fund
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Summary
The district’s finance team briefed the board on expenditure drivers in the 2026–27 draft budget—wages, benefits and transportation—citing a preliminary $2.1M deficit; the board authorized a $5M Commonwealth grant application for Lincoln Elementary facility improvements and approved creation of a technology infrastructure stabilization fund.
East Penn School District administrators presented a detailed expenditures briefing for the preliminary 2026–27 budget and asked the board to approve several administrative actions, including a grant application for Lincoln Elementary and the establishment of a technology infrastructure stabilization fund.
The finance presenter said three categories account for roughly 72% of expenditures—wages (about 42%), benefits (about 30%), and transportation—and described health‑care premium pressure driven by consortium experience. "The current health care cost trends are running at a rate that requires premiums to reflect actual experience," the presenter said, explaining the draft budget currently reflects a 19.85% estimate that will be revised to a final 17.75% consortium increase and that enrollment shifts (people moving to higher‑cost tiers) also raise the overall group insurance category.
Administrators listed primary medical cost accelerators such as GLP‑1 weight‑loss medications, specialty autoimmune drugs and increased mental‑health utilization. They also noted other structural drivers: retirement contribution costs tied to wage growth, charter/cyber tuition increases, LCTI tuition uncertainty (administration used a 10% placeholder), and transportation cost increases (about an 11.25% projected rise in routing costs). The presenter said the draft shows a projected $2.1 million preliminary gap (about 1% of expenditures) that the administration expects to refine during the budget development process.
On capital and grants, the board approved a resolution authorizing submission of a Public School Facility Improvement Grant to the Commonwealth Financing Authority for a guaranteed energy savings project at Lincoln Elementary. The application seeks the maximum allowable award of $5,000,000 toward a project with a total projected cost of just over $7,000,000; the administration said the balance would come from district capital reserves if the grant is not awarded. Facilities staff summarized the scope: HVAC upgrades and indoor air quality improvements, lighting and energy‑efficiency measures, security upgrades and emergency communications, building envelope/weatherization, accessibility upgrades and some classroom sink installations.
The board also voted to establish a technology infrastructure stabilization fund to set aside excess general‑fund dollars in targeted years to smooth large refresh cycles. Administration described a 10‑year funding plan and the intent to seed the fund with a one‑time transfer from budgetary reserve upon board approval; future annual transfers would be contingent on available year‑end excess funds. The motion to create the fund passed by roll call.
Several routine personnel and business items were approved by roll call during the meeting. The administration emphasized that the budget numbers are preliminary and that subsequent drafts will reflect updated healthcare rates, attritional savings from retirements, and any adjustments the board directs as it narrows the draft to a balanced proposal over the coming months.
Next steps: administrators will revise the draft budget for the board’s consideration in subsequent meetings and proceed with the grant submission due March 13; the board will review final budget and priority items in March.
