Pennsbury board approves $278.44 million budget and 3.5% tax resolution

The Pennsbury School District board approved its final 2026–27 budget of $278,438,550 and a real estate tax resolution reflecting a 3.5% Act 1 increase, voting to adopt the consent agenda that included the budget after committee reports and public comment.

The budget presentation, given by Dr. Smith, laid out revenues of $273,956,225 and total expenditures and other financing uses of $278,438,550, leaving an estimated shortfall of about $4.4 million to be covered from the district’s fund balance. Dr. Smith and committee members said about 75–80% of the district’s costs are salaries and benefits, and they highlighted specific pressures: increased debt service related to a planned new high school, specialized transportation costs that rose substantially year-over-year, and higher energy and utility costs.

Why it matters: trustees said the budget seeks to balance continued investment in instruction and student services with fiscal constraints. The board’s finance committee recommended approval of the package of items that comprised the consent agenda, including the budget, a homestead/farmstead exclusion resolution, and a senior property tax rebate program.

Supporting details: Dr. Smith reviewed revenue sources and the breakdown of expenditures, telling the board the majority of revenue comes from local real estate taxes with approximately $65 million from state sources spread across categories. The administration plans to use targeted reductions and attrition to control personnel costs, and to pursue zero‑based budgeting for the 2027–28 fiscal year. The finance committee report packaged the budget with routine motions authorizing transfers, establishing committed fund balance categories, renewals of insurance and benefits, and several contracts and MOUs.

Board action: The board approved the consent agenda by roll call. The record shows affirmative votes from the members who answered during roll call, and the chair announced the motion passed. The budget and related fiscal items will be posted with formal minutes and supporting materials.

Next steps: administration plans to proceed with year-end closing and the fiscal audit for 2025–26 and will continue to report to the board on multiyear fiscal strategy, debt service planning tied to the new high school project, and implementation of zero‑based budgeting. The board also discussed next steps on facilities planning and related grant applications during committee reports.