East Penn board hears detailed 2024–25 expenditures presentation; administrators flag 20% transportation increase and $5.7M reserve use

East Penn administrators delivered the third installment of the 2024–25 budget process on Feb. 24, outlining major expenditure drivers and longer-term fiscal implications.

Revenue and roadmap: The presentation reiterated a budget roadmap leading to a June 10 adoption date and described objectives including sustaining current programs, funding capital priorities and evaluating positions now supported by ESSER funds.

Major cost drivers: The district identified a composite wage increase of roughly $3.5 million (about 4.79 percent) and projected a 5 percent medical insurance premium increase (presenters used a 5 percent planning assumption, with an average effective increase noted near 3.25 percent due to opt-outs). Administrators said special‑education costs are rising notably because of approved private placements and contracted behavioral supports; curricular materials increases were flagged for I‑Ready, Reflex Math, FastBridge and Lexia Core to address screening and fluency gaps across K–12.

Transportation and debt: District staff said the current transportation contract expires this year and RFP responses point to at least a 20 percent increase in transportation costs for 2024–25. The draft budget incorporates a K–8 realignment millage phase‑in that layers new debt service on the projection; to accommodate one year of necessary expenditures the plan calls for using $5.7 million of district reserves in 2024–25 by temporarily reducing the transfer to capital reserve.

Grants and charter tuition: Presenters noted expiration of a two‑year mental‑health and safety grant that reduced expenditures this year and reminded the board that charter and cyber tuition rates and special‑education tuition have trended upward since 2020–21. LCTI contributions for 2024–25 were reviewed by the district’s representative and placed on the agenda for approval.

Board follow-up and approvals: Board members asked about bus-provider services (parents’ desire for real‑time bus apps), insurance strategies and how curriculum priorities would be scheduled later in the budget cycle. The board approved the CLIU general operating budget and the LCTI 2024–25 budgets by roll call during the meeting.

Next steps: Administrators said they will return with long-range fiscal and capital-plan details and will refine numbers as actual insurance renewals and RFP results are finalized ahead of budget adoption in June.