Susquehanna Township School District board reviews 2026–27 budget, cites $1.8M shortfall and recommends tax increase

The Susquehanna Township School District board on Wednesday reviewed the administration's proposed 2026–27 budget and heard that a previously projected $7.2 million deficit has been reduced to roughly $1.8 million through administrative adjustments and updated revenue estimates.

The administration said projected revenues for 2026–27 are $76.3 million against expenditures of $78.2 million. "We have been able to bring that down to 1.8," the presenter said, summarizing the gap the district still must close. Local revenue remains the largest source of district funding; state aid accounts for about one-third of revenues and federal funds are limited and focused on targeted programs.

To help close the gap, the administration recommended a tax increase that it said would raise the annual cost to the average homeowner by about $115 (roughly $9.65 per month). The presenter said the recommendation is intended to "keep up with the operational costs and ensure that we can continue to provide the educational services that we have in place." The budget includes a $300,000 contingency reserve and assumes a 97% collection rate on property tax revenue.

Board members pressed the administration on several expenditure items: medical premiums budgeted near a 19.9% increase, rising pension-related costs and larger transportation spending. The presenter said pension costs are substantial, citing a district figure of about "33.59" on every dollar of salary as presented in the meeting, and noted the district has budgeted for principal and interest payments tied to outstanding debt.

Separately, the administration said it is planning for future bond issuances tied to the Stanley Drive property to pay for a bus lot and to preserve options for a possible new elementary school on that site. The board was told change orders tied to existing construction projects will come forward for approval as needed and that bond funds will be used for some remediation and restoration costs discussed later in the meeting.

The board did not adopt the general-fund and food-service budgets at this meeting; the presenter said formal votes on the general fund and the food-service fund are scheduled for the June 15 meeting. In the interim, members approved related finance agenda items and several contracts by roll call during the same session.

What happens next: The administration will return budgets for formal adoption on June 15 and continue to monitor revenues and expenditures through the end of the fiscal year. Any proposed tax-rate change would follow required public-notice and adoption steps before taking effect.