Abington Heights board reviews preliminary 2026–27 budget as health care, special education squeeze finances
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Summary
District staff presented a draft 2026–27 budget showing a $2.8 million gap without a tax increase; health-insurance claims, special-education outplacements and a one-time tax-appeal refund were the largest pressures while a $1.1 million state grant and other revenues partly offset shortfalls.
The Abington Heights School Board on April 15 heard a preliminary look at the 2026–27 budget that showed rising health-insurance and special-education costs threatening to consume projected revenue increases.
Jim Mirabelli, the district presenter, told the board the draft assumes $62,745,000 in revenue and roughly $65.6 million in expenditures, leaving a $2.8 million budgetary gap in the draft without policy changes or additional state revenue. "Overall, we're projecting to come in $2,500,000 positive on the revenue side," Mirabelli said, noting a $1.1 million Ready-to-Learn/accountability block grant as a key revenue boost.
Why it matters: school officials said the largest recurring pressures are health-insurance claims and special-education costs, which have proven volatile year-to-year and, in the board's account, have eroded reserve balances. Mirabelli reported the district currently projects a $700,000 positive finish to the current year but cautioned next year’s budget remains preliminary and may change as staff refine assumptions.
Board members asked whether the growth in purchased professional services reflected higher volumes or reclassification of positions; Mirabelli said some roles were moved from salary objects to professional services and that outplacement costs for special education can swing by large amounts from year to year. The presentation also noted a $375,000 negative variance this year tied to settling a decade-old real-estate tax appeal, an unanticipated one-time charge.
Health-insurance pressure drew repeated attention. Mirabelli recommended adding roughly $500,000 into the health-insurance reserve for 2026–27 after the district's health fund balance fell in recent years. One board member highlighted specialty medications — particularly anti-obesity drugs — as a major cost driver, saying the district is paying about $105,000 every two months for that drug category ("to the tune of $650,000 a year," as the board member put it).
The draft also reflects one-time investments and mandates: staff cited a purchase of 600 Chromebooks to support state online testing and an ongoing capital plan tied to phased debt service for a middle-school addition. Mirabelli said a full 4.1% Act 1 tax increase would raise approximately $1.3 million — enough to reduce but not fully close the draft's gap — while emphasizing the district is conservative in revenue forecasting.
Next steps: Mirabelli said the board is expected to consider and likely pass a preliminary budget at the May 20 meeting and to adopt a final budget at the June 17 meeting. He asked the board to continue refining projections over the coming weeks and to focus on the largest cost drivers — health insurance, special education and staffing — as they work toward a balanced plan.
The board did not take formal action on the budget at the April 15 meeting; Mirabelli will return with updated numbers.
