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Exeter Township SD committee warned of nearly $2 million shortfall as health‑insurance costs climb
Summary
The finance committee reported a projected operating shortfall approaching $2 million and flagged a potential 3.6%–4.1% tax‑rate scenario. Administrators said they are budgeting for a 16% increase in health‑insurance costs tied to Burks Health Trust uncertainty and urged trustees to refine proposals before the April 21 vote.
Exeter Township School Board committee — April 8, 2026 — Finance officials told the committee the district faces an operating shortfall approaching $2 million for the 2026–27 fiscal year and outlined several drivers behind the gap, including rising benefits, maintenance and transportation costs and a declining local tax base.
The presentation said federal funding levels are down and state allocations remain uncertain, requiring conservative assumptions when preparing next year’s budget. The administration illustrated tax‑rate scenarios shown in the packet (a March projection of roughly 4.1% and a later illustration near 3.6%) and said an example figure presented in the meeting would be about $126 for the average homeowner as shown in that illustration.
Health‑insurance costs: Business administrator Mr. Fe said the district is budgeting for a 16% health‑insurance increase and described timing uncertainty with the Burks Health Trust, which sets employer rates. He told the board administrators were using the proposed state adequacy and tax‑equity assumptions in revenue projections and cautioned that the trust’s final rate setting may occur in June — after some district budget deadlines.
Other pressures: The administration cited maintenance and utility cost increases, bus‑replacement cycles (a district staff estimate placed a bus at roughly $140,000 after discounts) and a loss of taxable assessed value from reassessments as contributors to the gap. Administrators said the district has used attrition to reduce staff costs where possible but noted special‑education program growth requires continued facility and staffing support.
Board options and timeline: Board members discussed tradeoffs — including possible program or staffing reductions, which they said they do not favor — and alternatives such as revising activity/athletics fees. The board must adopt a budget by May 31 (state statute requires adoption by June 30); administration will present a preliminary budget for approval at the upcoming voting meeting.
Next steps: Administration will provide a detailed proposed budget, updated health‑insurance rates if available, and potential fee‑structure adjustments for the April 21 voting meeting.
