4 percent increase could be finalized or reduced in June
The 2025-26 budget for the North Penn School District, with an accompanying tax increase, is now one vote away from being finalized.
School board members voted Thursday night to advertise a draft budget with a 4 percent tax increase, subject to a final vote next month.
“It won’t be this high next year, and it could still go down,” said board President Cathy McMurtrie
Each year the school board votes in the fall on whether to stay within or exceed the state-set Act 1 index of a maximum tax increase that can be approved without a voter referendum, then hears departmental budget presentations throughout the spring, before adopting a preliminary budget in May and finalizing it in June before the fiscal year starts July 1.
Last June, North Penn’s board approved a $322 million 2024-25 budget, with a 4.49 percent tax increase, equaling a $197 hike for the average taxpayer, then voted last fall to stay within the Act 1 level of a 4.0 percent increase for 2025-26. In early April the board heard details of the latest draft budget, with revenues and expenses slightly higher than in prior years due to the need to record a $10 million transfer from reserves meant to partially fund the first phase of renovations to North Penn High School, scheduled to start this week.
At that time, the board also saw various tax increase scenarios, including that a full 4.0 percent increase would yield a surplus of roughly $265,000, at an increase of $186 for that average resident, and a tax increase of 3.8 percent would generate enough new revenue to offset the projected $8.6 million starting deficit but with no surplus. Each one percent increase in the district’s tax millage would generate just over $2.2 million in new revenue, and cost the average homestead an additional $47, based on an average assessed home value of $150,000, according to district staff.
On Thursday night, Superintendent Todd Bauer read a motion asking for the board to advertise the draft budget for public input and feedback, with the 4 percent tax increase included, projected expenses of roughly $338.6 million, revenues before any tax increase of $330 million, and with several tax increase scenarios included in supporting documents.
An increase of 3.7 percent would bring a $181 increase in that average resident’s tax bill and yield a $285,000 deficit; a 3.9 percent increase would bring the average tax increase to $191 and yield a $161,000 surplus, according to the district; staff have said the year-end surplus for 2024-25 could be as high as $12 million once the fiscal year ends and books are audited.
No board members commented on the budget and the proposed increase during the vote, and McMurtrie said afterward she’s still reviewing the various options and expects more discussion at the board’s upcoming finance committee meetings.
“We will never go above the Act 1 index, and we will look to whatever Act 1 is,” she said.
North Penn’s school board saw a chart of the state-set Act 1 index from 2007-08 and projections through 2028-29 during the board finance committee meeting on April 8, 2025. (Image courtesy of North Penn School District)The board also met new CFO Tara Houser, who started on the job this week, and said she and staff could still make minor adjustments to the budget until final adoption.
“We are statutorily required to post the budget for a certain number of days, so this is our best, last draft, and then the final will be on June 18,” Houser said.
North Penn’s finance committee next meets at 6 p.m. on May 21 and June 3 and the full board next meets at 7 p.m. on June 3 and June 18; for more information visit www.NPenn.org.
