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South Middleton board adopts $53,985,454 budget, sets 14.119-mill rate and awards $725,013 Rice Elementary restroom contract
Summary
The South Middleton School District Board on May 18 adopted a $53,985,454 budget for 2026–27, approved a 14.119 mills real estate tax levy, and unanimously awarded $725,013 in construction contracts for Rice Elementary restroom renovations.
The South Middleton School District Board of School Directors on May 18 adopted the 2026–27 general fund budget, set the real estate tax rate at 14.119 mills and approved construction contracts totaling $725,013 for Rice Elementary School restroom improvements.
The budget resolution authorizes $53,985,454 in expenditures for the fiscal year beginning July 1, 2026, and continues the district's local tax structure (realty transfer tax, earned income tax and local services tax). The budget passed by roll-call vote, 7–2; board members raised concerns about the removal earlier of a senior-citizen tax discount.
Superintendent Dr. O'Donnell highlighted the fiscal strain of mandated services during discussion. "Special education expenditures increased from about $5,700,000 in 2022 to a projected $9,760,000 in 2027," he said, adding that federal IDEA reimbursement and state special education subsidies have lagged, increasing the local share of those mandated costs and creating a long-term budgetary challenge for the district.
On construction contracts for the Rice Elementary restroom project, the board accepted LaVar Associates' general trade low bid of $292,020 plus an accepted alternate (G1) of $55,213 for a final general contract of $347,233, and accepted LTS Plumbing & Heating Inc.'s base plumbing bid of $377,780. The total construction contract amount approved is $725,013; the resolution noted awards are contingent upon bonds, insurance and necessary agency approvals. The restroom contract vote was unanimous, 9–0.
Board discussion on the budget included an appeal to state legislators to improve school funding and a comment that rising special education costs and expected enrollment increases (the superintendent projected nearly 1,000 additional students over the next 10 years) put pressure on local taxpayers. One board member said the district "missed an opportunity" by not including a senior tax discount in the adopted budget.
Procedural notes: the motion texts and rolls were moved and seconded from the floor; specific motion movers and seconders were not named in the public record for the budget motion. Both the budget resolution and the construction awards reference the district's submission (PDE forms) as presented at the meeting and include standard contingencies for contract execution.
The board will post the adopted resolutions and contract awards on the district website. An executive session (personnel and student matters) was scheduled to follow adjournment.
