Cheltenham School Board reviews proposed 3.5% property tax increase to close a $5 million gap

The Cheltenham School District board on April 14 reviewed a proposed final budget that includes a recommended 3.5% property tax increase as part of a plan to close an estimated $5 million annual gap.

At the financial affairs report, board member Zachary EPS said the proposed 3.5% tax increase — included in the proposed final budget posted on the district website — is intended to help close what he described as a roughly $5 million shortfall. EPS explained that falling elementary enrollment is expected to reduce salary and benefit costs by about $2.3 million and that the tax increase would generate “somewhere around a little under three million,” which together would nearly close the gap.

“From a revenue perspective, that is a new and a major update that we want our community to be aware of,” EPS said. He added that the proposed final budget is posted online for public review and that tonight’s vote does not finalize a tax increase.

Board members underlined that the process allows time for further review before a final budget vote. Board members and administrators said the district will hold additional committee meetings (financial affairs committee on May 5) and that the formal adoption of the annual budget is scheduled for late spring (the transcript references a final vote timeframe in early June).

Several members emphasized the board’s fiduciary role and the goal of limiting the structural deficit. One board member noted the district is working to reduce costs where possible and to use fund balance prudently while seeking longer‑term stability.

What’s next: the district will continue financial committee review and public outreach; the proposed final budget remains available on the district website for community review, and the board expects further financial committee meetings before the final adoption vote.