East Penn previews 2024–25 budget; administrators flag revenue assumptions and $25.8M audited fund balance
February 12, 2024 | East Penn SD, School Districts, Pennsylvania
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East Penn School District administrators on Feb. 12 gave the board and public a first look at the 2024–25 budget, focusing on fund balance carryforward, revenue sources and conservative assumptions while warning several figures remain preliminary until state and county data are finalized.
Director of Finance Mr. Sall said the district is carrying forward an audited June 30, 2023 fund balance in the neighborhood of $25.8 million and described the fund-balance components — nonspendable, restricted, committed, assigned and unassigned — to clarify that much of the total is reserved for specific purposes. “Our audited ending fund balance was 25,800,000,” he said, noting those dollars form the starting point for next year’s budget.
On revenues, Sall reviewed the three primary sources — local, state and federal — and walked through components of tax revenue including assessed value, millage and collection percentage. He said current real-estate taxes are showing a preliminary year‑over‑year increase of about 6.91 percent and explained that the district multiplies assessed value by millage and then adjusts for exemptions, collection rates and TIF allocations.
Sall also contrasted his conservative 3 percent forecast for state basic education subsidy with a recently released governor’s proposal that would increase funding to East Penn by a larger amount (administration referenced an early report of ~11.7 percent). “Because there was such a disparity between those, I wanted to talk a little bit about why that exists at this point,” Sall said, explaining the administration prefers conservative estimates until the legislature acts.
Board members pressed for additional clarity: Ms. Bowman asked how many dollars separate the 3 percent and the governor’s 11 percent scenarios; Sall responded the difference would move the budgeted state line from about $18.7 million to about $18.8 million in his estimate. Mr. Jankowski and others asked about the Hamilton Crossings TIF timing and the effect of Act 1 allowable increases; administrators said some uncertainties — including PlanCon reimbursements that have ended and fluctuating interest income — will be refined in coming presentations.
The presentation was informational; the board will consider additional revenue and expenditure details over the spring as the district works toward a final adopted budget at its June 10 meeting.
Director of Finance Mr. Sall said the district is carrying forward an audited June 30, 2023 fund balance in the neighborhood of $25.8 million and described the fund-balance components — nonspendable, restricted, committed, assigned and unassigned — to clarify that much of the total is reserved for specific purposes. “Our audited ending fund balance was 25,800,000,” he said, noting those dollars form the starting point for next year’s budget.
On revenues, Sall reviewed the three primary sources — local, state and federal — and walked through components of tax revenue including assessed value, millage and collection percentage. He said current real-estate taxes are showing a preliminary year‑over‑year increase of about 6.91 percent and explained that the district multiplies assessed value by millage and then adjusts for exemptions, collection rates and TIF allocations.
Sall also contrasted his conservative 3 percent forecast for state basic education subsidy with a recently released governor’s proposal that would increase funding to East Penn by a larger amount (administration referenced an early report of ~11.7 percent). “Because there was such a disparity between those, I wanted to talk a little bit about why that exists at this point,” Sall said, explaining the administration prefers conservative estimates until the legislature acts.
Board members pressed for additional clarity: Ms. Bowman asked how many dollars separate the 3 percent and the governor’s 11 percent scenarios; Sall responded the difference would move the budgeted state line from about $18.7 million to about $18.8 million in his estimate. Mr. Jankowski and others asked about the Hamilton Crossings TIF timing and the effect of Act 1 allowable increases; administrators said some uncertainties — including PlanCon reimbursements that have ended and fluctuating interest income — will be refined in coming presentations.
The presentation was informational; the board will consider additional revenue and expenditure details over the spring as the district works toward a final adopted budget at its June 10 meeting.
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