Delaware Valley board adopts 2026–27 budget with 3.5% tax increase after lengthy debate

The Delaware Valley School District Board of School Directors voted 8–1 to adopt the 2026–27 general fund budget, approving a 3.5% real‑estate tax increase that sets a millage rate at 128.71 and a balanced budget of $102,519,418 in revenues and expenditures.

Board members resumed a months‑long budget discussion at the meeting, focusing on reserve levels, actuarial health‑benefit assumptions and whether one‑time revenue changes could lower the tax increase without cutting programs. An earlier motion to approve a 3.93% increase at a 129.25 millage rate failed on a 2–7 roll call; board members subsequently directed staff to present revenue adjustments and reconvened for a second vote.

Jack Fischer, chair of the newly formed budget/finance committee, said the board could reach a lower increase ‘‘if we go with my gut, Bill, on the revenue items, we’ll get down to 3.5,’’ signaling an effort to meet mid‑range targets primarily by adjusting projected revenues rather than cutting current programs.

District finance staff presented options that included higher interest earnings, delinquent tax collections, transfer‑tax receipts, IDA and PlanCon adjustments and a proposed $50,000 use of medical assistance funds to offset some special‑education expense. Finance staff cautioned that some revenue items — especially interest income and delinquent taxes — are sensitive to market movement and timing of tax collections.

Board members who opposed the initial 3.93% figure said they were concerned about the strain on small businesses and the need for larger unassigned reserves to cover future unpredictable costs. Supporters of the final 3.5% motion emphasized the district’s obligation to fund contracted salary and benefits increases and the desire to avoid program cuts.

Votes at a glance:
- Initial motion to adopt 2026–27 budget at 3.93% (millage 129.25) — failed, roll call 2 yes, 7 no (motion failed). (Recorded during discussion starting SEG 1155; failed SEG 1779–1796.)
- Final motion to adopt 2026–27 budget at 3.5% (millage 128.71) — passed, roll call 8 yes, 1 no. (Passed SEG 3015–3080.)

What happens next: With the budget adopted, the district will finalize tax‑rate calculations and proceed with its capital and operating plans for 2026–27. Board members asked staff to place some of the one‑time revenue gains into the budgetary reserve to reduce exposure to a future ‘‘black‑swan’’ event and discussed forming a standing committee to examine steady, smaller annual increases rather than intermittent larger increases.

The budget vote was one of several actions the board took at the meeting; other approvals included contract renewals, capital project bids and adoption of the district comprehensive plan. The board set future meeting dates for June and announced committee scheduling to review contract and procurement thresholds.