Tredyffrin-Easttown budget workshop shows narrower deficit but millage impact remains

Tredyffrin-Easttown School District business manager Art McDonnell presented the revenue side of the proposed 2024–25 budget at the districtbudget workshop, saying the "operational deficit is actually better than the last time we looked at it" and identifying a sequence of revenue treatments that reduce the shortfall.

McDonnell said the deficit without new property-tax revenue stood at about $10.3 million, would fall to a little over $3.1 million with the Act 1 index applied, and — with a state-authorized special-education exception of 6.311 mills — decline to roughly $1.8 million. "We are now authorized to go above the index by the amount that you see on the screen here," he said, noting the state returned written approval for the exception.

He told the board the proposed budget includes a planned transfer to the capital fund of about $6.0 million, which he said is built into anticipated spending rather than left in contingency. "So basically, what we're saying is we anticipate that we're gonna have $6,000,000 to move to the capital fund," McDonnell said.

McDonnell reviewed the district's revenue composition, saying local revenue (about $145 million) is concentrated in real-estate taxes (about 92% of local receipts), state revenue totals roughly $27 million and federal grants vary year to year. He described assumptions used in the budgetthree- or seven-year averages for different lines, a 4% investment-earnings projection and the use of current-year projections where the state has provided explicit numbers.

On state funding, McDonnell said the governor's proposed budget reset the funding base and included a $200 million statewide addition that the district used cautiously in planning. He also described a $50 million special-education increase in the governor's proposal and explained how TEunder the current, older basewould receive only a portion of that increase.

McDonnell warned the board about reliance on variable revenue such as transfer taxes and investment earnings, which he said have historically swung from under- to over-budget and can complicate capital planning. He also discussed employer pension costs (PCERS) and their net impact after a 50% state subsidy.

Board members asked detailed questions about specific lines: the use of seven-year averaging (and exclusion of a COVID year) for some revenues, recent small rate tweaks for rentals and student-activities revenues, and how charter-school tuition proposals would affect district tuition costs if adopted.

President Katorsuk summarized the board's approach to budgeting and transparency, noting that apparent "surpluses" often reflect planned capital transfers and that the district is not simply accumulating unspent funds. The board scheduled further expense review at the next workshop; McDonnell listed key dates for the process, including a proposed-final budget in late April and a final budget vote on June 10.

What happens next: the board will consider expense-side reductions in a subsequent workshop, revisit variable-revenue assumptions, and finalize proposed millage rates as part of the April–June budget sequence.