Chester-Upland SD board approves $32 million bond; preliminary budget shows small surplus as staff seeks savings to avoid tax hike

The Chester-Upland SD school board on May 28 approved a resolution authorizing up to $32,000,000 in general obligation bonds to finance acquisitions, renovations and other capital improvements, and heard a preliminary budget presentation that officials said includes a modest operating surplus as they continue looking for savings.

The motion to authorize the bonds (action item C19) was moved during the board’s business-office agenda and carried after a roll-call vote in which multiple members recorded “yes.” Chair (speaker 1) declared, “The motion carries.” The resolution authorizes issuance of general obligation bonds to finance acquisition, construction, renovation, installation, furnishing and equipping of district facilities.

Why it matters: Board leaders framed the bond authorization and budget review as part of the district’s court-ordered recovery plan and long-term facility and instructional investments. Staff said these steps are necessary to stabilize district operations while the district continues to reconcile revenue and expense pressures, including large charter-school tuition outflows.

Accounting specialist Paul Hammond, who presented the preliminary budget, said the district’s major revenue components totaled roughly $186,000,000 and identified total expenditures near $185,759,000, yielding what he described as an operating surplus of $569,445. "We are confident that we can find more budgetary savings," Hammond said during the presentation.

Officials emphasized that state funding makes up the majority of district revenue in Chester-Upland SD and that local revenue is a much smaller share compared with typical districts. In the presentation staff said local funding accounted for roughly 12% of revenue for the district, with state funds representing about 85% and federal funding about 4%.

Tax guidance and next steps: Board leadership noted that the court-ordered recovery plan includes a mechanism for a modest tax increase and that a tax increase is reflected in the preliminary budget as an option. At the same time the Chair told the board the district is currently showing a small surplus and that staff will continue to vet proposed expenses to try to avoid imposing a tax increase on residents. As an example of local impact presented by staff, officials said a hypothetical tax increase applied to a home assessed at $125,000 would amount to about $105 per year for a Chester resident and about $98 in surrounding boroughs (figures provided by staff as part of the preliminary scenario).

Capital and facilities: The presentation noted that the district has invested in facilities since 2021 and cited an amount “over $35,000,000” in upgrades, with planned renovations including cafeteria and nurse’s-office work, athletic field improvements and creation of 14 autistic-support rooms across the district.

Charter-school costs and special education: Presenters highlighted the district’s exposure to charter-school tuition outflows and estimated charter-related payments in the range of $75 million to $83 million (figures provided in the presentation). Staff also said the district’s share of students served under special-education designations is substantially higher than the statewide average, and that three of five audit sections for special education have been completed with the Serenity Group leading audit work; the fourth section was reported as expected in June and the final in July or August.

Public availability and schedule: Officials said the preliminary budget will be posted for public review on May 29 and that the final budget adoption is scheduled for June 18. The presenter reiterated plans to continue analyzing variances and seek additional savings before final adoption.

Votes at a glance: The board approved action items A1–A40 under the education agenda and B1 under personnel; the board also voted to approve C19 (bond authorization) and then approved business office and supplemental business-office items C1–C21 as announced by the Chair. The motion to authorize bonds was carried by roll call and recorded in the meeting transcript as "The motion carries." The transcript records multiple "yes" responses during the roll call (Lavender Sands, Harris, Kirkland, Veil, Treasurer Morales and President Johnson were recorded responding "yes" during the roll call as read aloud by the Chair). The transcript does not record a named second for the C19 motion.

What’s next: Staff will post the preliminary budget materials online, continue to examine expense variances and present a final budget for adoption at the June 18 meeting. The board’s action to authorize bond issuance allows staff and the district to proceed with planning for capital work described in the resolution.

Sources: Budget presentation and bond motion as recorded in the May 28, 2026 Chester-Upland SD board meeting transcript. Quotes and figures above are drawn from the meeting record and the district presenters’ remarks.