Quakertown workshop presents preliminary budget with $5.0 million 2024–25 deficit, no tax hike planned

Miss Young, a presenter for Quakertown Community SD, told the board at a Feb. 24 budget workshop that the district’s preliminary budget includes no planned tax increase and is being presented as a status-quo spending plan.

"There is no tax increase in this budget. This budget is a status quo budget," Miss Young said as she walked the board through the slides and schedule for finalizing the budget.

The presentation explained the district had adopted an Act 1 resolution in November capping increases at the Act 1 index of 3.5%; on the slide Miss Young noted a 3.5% increase would amount to roughly $2.0 million in additional tax revenue. She also flagged that the 2024–25 audited figures show the district ended the year with a $5,002,736 deficit.

"Ultimately, we are looking at a deficit of 5,002,736 for 24/25," Miss Young said, adding auditors were finishing quality-control rounds and did not anticipate substantive changes to the audit numbers.

Why it matters: the preliminary figures set the baseline for the March and April review calendar and the board must finalize a budget in advance of its June meeting under the district’s scheduling requirements. Miss Young outlined the timeline: a second workshop March 31, a finance committee update April 9 and a proposed final budget on April 23, with adoption timing tied to the June 11 meeting.

Key budget drivers and uncertainties cited by staff included a projected 17% increase in health-care costs for the coming year, which Miss Young said may be refined after additional insurer rate runs. She warned staffing outcomes (resignations or retirements) and final schedule builds were not yet incorporated in the preliminary salary lines.

The presentation also addressed revenues and reserves: staff reported expenditures for 2024–25 came in about $9.5 million under budget, while revenue was about $140,000 under budget. Miss Young said the district has included a slight upward adjustment to tax-duplicate revenue based on recent interim reports, but the final tax duplicate will be set in June.

On capital items, Miss Young said a softball field discussed by the facilities committee is not included in the current draft and would require separate consideration if added. She recommended that the district’s chiller replacement be paid from the capital reserve, and cited a current capital reserve balance of about $3,200,000 while noting the final cost estimates would determine any recommendation.

Other items highlighted: the tech-school budget was included at the full approved amount and staff are coordinating to invite tech-school representatives to the March board meeting; the district’s adoption of the Community Eligibility Provision (CEP) for food service carries costs reflected in the 24/25 actuals and 25/26 projections; and the governor’s proposed state budget, if enacted in its current form, would add an estimated $265,000 to the district under the new formula — an amount staff said was not incorporated into the preliminary figures.

What’s next: staff said they will refine health-care estimates and departmental budgets as new data arrive and will return to the board at the March 31 workshop and the April finance meeting before presenting a proposed final budget on April 23.