It was recommended by the finance committee during the most recent meeting of the Upper Dublin School District’s Board of Directors that the board approve a final proposed budget for the 2024-25 school year, which includes expenditures of $121,149,715.
With a goal of approval during the June 24 meeting, the board had to approve the proposed final budget’s release for public review, as well as advertise its contents and intent to approve in the coming month.
Public Comment on Proposed Budget
During the public comment, which was held prior to the board’s review of the budget, Upper Dublin resident Ginny Vitale — who unsuccessfully ran for school board in November 2021 — had some opinions to share.
“The 2.0, seven percent tax increase, I know is not going to change much, but I feel like I still had to come and advocate for the community that is, once again, sick and tired of tax increase after tax increase, after tax increase,” said Vitale.
“To say that it is below the Act 1 is… we don’t care,” continued Vitale. “We don’t care. That’s not a goal. We shouldn’t even be close to it because there were many years where we were much higher than other school districts. So, that two percent is compounded on compounded on compounded on what we already have.”
Vitale said that, as the district faces a “third year in a row of budget overages of $5 million,” it is, in her words, “certainly better than a budget underage.”
“I don’t mind that,” she said. “I think it is conservative thinking. I think that’s great, but I think that it should be considered when we’re talking about tax increases for the community.”
Vitale said that the board is planning a $3 million capital reserve, and this proposed budget would, in her words, add another $5 million.
“And last year, we put another $8 million away,” she said. “We are putting money away, which is good, but the tax increase should go down.”
Vitale said that the addition of “two new expensive administration positions” was another cost savings the board should consider.
“Our enrollment is flat and even decreased by 25 I noticed from last year at this time,” she noted, questioning the need for additional administrative roles.
“The economy is where it is, people are really struggling,” she added. “People can’t pay for food or gas. They’re really hurting. They’re maxing out credit card debts.”
Vitale said she agreed with some board members’ opinion that taking an additional two percent from the community to save for future projects seemed unfair. She had specific concerns about those on fixed incomes who are not receiving increases to pension or social security payments at the rate of rising taxes.
“We don’t want to force out older, aging people that have been dedicated community members of Upper Dublin for years and years and years,” said Vitale. She said another “waste of money,” in her opinion, was a proposed bus depot that she said was not needed. She noted even at a “couple of hundred dollars,” such increases could hurt families on tight budgets.
“When you talk about two percent rather cavalierly, you have to remember that it is on top of all of these tax increases over and over and over again,” said Vitale. “It is compounding, and we have to think about people that might not be able to afford it at this time.”
A requirement to advertise the budget
Board of Directors Vice President Mark Sirota said, as part of the finance committee’s recommendations, was the proposed final budget of the school board.
“I’ll just call attention in particular to Item I, which is approval of our proposed final budget, so that it can go out and be advertised for 30 days before we approve our final budget next month,” said Sirota.
Sirota made a motion to approve the aforementioned advertisement as part of a bundled vote, including Items “A through M.” Director Jenna Evans seconded the motion, which then passed unanimously with no opposing votes.
The final approval of the budget will take place at the June 24 meeting. A public notice and inspection of the annual General Fund budget is a required step, outlined by Act 1 of 2006 and the Pennsylvania School Code. Changes to the budget can be made prior to the planned adoption at the June 24 Legislative Meeting. The presently proposed budget does include a 2.07% tax increase to all Upper Dublin property taxpayers.
Budget by the numbers
The proposed 2.7% increase is below the Act 1 base index, which is 5.3%. In other words, the board has a limit to the amount taxes can be raised in a single year, and the currently proposed increase of 2.07% will be well below 5.3%. The additional taxes are to generate $1,785,000 in new revenue.
The 2024-25 school year budget is an increase of expenditures totaling $3,144,055, which is 2.7% over the prior year’s budget. In its Budget Narrative, the board noted increases are largely a result of “increases in personnel-related costs” totaling $3,441,000, with $2.22 million being wage increases and the remainder being a result of 15.5 newly created positions (3.5 of which are converted from contracted positions).
Additional spending was also caused, per the narrative documents, by benefit cost increases of $1.221 million driven by PSERS costs and a 10.4% increase in medical benefit rates, totaling $477,500.
Lastly, the budget increases are also a result of the necessary $1,050,000 for special education programs and services costs, according to the documents.
A proposed $3 million in the current budget is earmarked to be saved in the district’s Capital Reserve.
“The district has been actively funding and utilizing a Capital Reserve Fund for identified and future unknown capital projects and to replace the school bus transportation fleet,” reads the Budget Narrative document. “From 2020-21 to 2023-24, the district has transferred almost $33 million from the General Fund to the Capital Reserve Fund which funded over $15.3 million in capital projects and new buses.”
This year’s 2024-25 budget includes the same proposed saving plan.
“In order to continue funding the Capital Reserve Fund, the 2024-25 budget includes a planned transfer of $3,000,000, and based on current revenue and expense projections for the 2023-24 fiscal year, a surplus transfer will be recommended as of June 30, 2024.”
To review the proposed budget online, click here. To review the 2024-25 “Budget Narrative” for Upper Dublin, last updated May 14, 2024, please click here.
