Tredyffrin-Easttown staff narrow budget gap, propose capital transfer and bond under 6.311% Act 1 authority

Tredyffrin-Easttown School District finance staff on Tuesday presented a proposed final 2024–25 budget that reduces an untreated projection gap and includes a $6 million capital transfer and additional debt service tied to a planned bond. The administration said it will submit a proposed final budget to the board at the end of the month and expects to adopt the final budget at the June 10 meeting.

Finance presenter Mr. McDonnell told the board the administration had reduced the gap since earlier drafts: "we're down to a deficit after, a tax increase of 6.3 down to 1.5," and that the district’s projection model still showed an untreated shortfall of roughly $10,000,000 if no new revenue is added. He said the proposed budget would maintain a $3,000,000 reserve and put authorized spending at about $186,000,000.

The presentation included a $6,000,000 capital-fund transfer and about $8,000,000 in anticipated borrowing tied to capital needs. McDonnell said the administration will bring bond advisors (Raymond James and PFM) to the May finance committee and described a first bond issue in the roughly $40,000,000 range to be phased into debt service so the full impact does not hit immediately.

Mr. McDonnell and staff emphasized that compensation and benefits account for the majority of the district's expenditures and that operational increases (special education, busing, technology and supplies) are the major upward drivers. He said the administration expected additional reductions before the final proposal, estimating roughly $400,000 in net budgetary decreases to be reported at the next iteration.

On revenue authority, the presentation reviewed Pennsylvania’s Act 1 parameters and the board’s maximum taxing authority shown on the slide at 6.311%. McDonnell noted that a tenth of a percentage point on that rate corresponded to about $135,000 in local revenue on the slide presented.

The administration provided a timeline: the proposed final budget will be presented to the board on April 29; the board will hold finance-committee discussions in May; and adoption of the final budget is scheduled for the June 10 board meeting. The board opened the floor to questions and public comment, which included concerns about fund balance, supplies increases and whether the district had a clear menu of expense-cutting options to weigh against tax-authority choices.

The budget presentation concluded with the board acknowledging staff work on budgeting and financial reporting; no vote was taken at the workshop. The district will return to the issue at the stated upcoming meetings.