Penn-Trafford business manager recommends 4.12‑mill tax increase to balance $71.6M budget

Rebecca Rodriguez, the district’s new business manager, told the Penn‑Trafford School Board on June 8 that the proposed final budget for 2026–27 carries $71,635,881 in expenditures and would leave a starting deficit of about $953,036 after recent cuts and revenue adjustments.

Rodriguez recommended the board adopt a 4.12‑mill tax increase, saying the increase would generate a projected $423,826 surplus under current state‑funding assumptions. She presented alternative scenarios: a three‑mill increase would yield a modest surplus, while lower increases or none would require targeted cuts — not replacing retiring staff, eliminating additional student learning assistance positions, and removing bus runs among the possible reductions.

Why it matters: the presentation showed salaries and benefits make up roughly 74% of the district’s expenditures and local revenue accounts for about 55% of the district’s receipts. Rodriguez also noted a nearly $334,000 increase in assessed local property values contributed to revenue gains, and that federal funding remains under 1% of total revenue.

Rodriguez walked board members through the district’s fund‑balance position. She said the audited ending fund balance for the last fiscal year was roughly $6.72 million and that the district’s maximum unassigned balance under state rules is 8% (about $5.72 million on current spending). Based on current estimates she recommended assigning $2.78 million of the projected $5.5 million ending fund balance to cover one‑year pension and postemployment liabilities and leaving about $2.7 million unassigned.

Rodriguez also explained an alternative scenario that assumes the state approves an additional $397,000 in adequacy funding. Under that scenario the deficit would shrink (to about $556,000), and a smaller millage increase would be needed to avoid cuts. But she warned the board it will have to adopt a budget before the state finalizes its budget, creating timing uncertainty.

Board members asked for clarity about how any surplus would be used and urged administration to present concrete spending priorities for taxpayers. Rodriguez said she would return with recommended allocations and suggested including a contingency or budgetary reserve in the expenditure budget.

Key numbers and choices discussed:
- Proposed final expenditures: $71,635,881 for 2026–27.
- Proposed revenues (no tax increase shown): $70,682,845 (leading to the stated deficit).
- Current deficit after recent cuts: ~$953,036 (down from an initial $1.584M projection).
- Revenue increases cited: roughly $334,000 attributed to assessed value changes.
- Recommended assignment of fund balance: $2.78M for pension/OPEB needs; ~ $2.7M unassigned.
- Recommended millage: 4.12 mills (recommended by administration) would produce a projected $423,826 surplus; other millage options and corresponding cuts were presented in detail.

Rodriguez framed the choice as one between modest tax increases and program/position cuts, and emphasized the district’s fiscal constraints while noting the district’s low per‑pupil spending and high achievement ranks countywide. She told the board, “I am just telling you that honestly … it is getting extremely difficult with the amount of needs we have,” and asked the board to provide direction before next Monday’s budget vote.

Next step: the board is scheduled to vote on final budget adoption next Monday; administration will return with suggested uses for any surplus and recommended language for budget documents. The transcript does not record a final board vote on the 2026–27 budget at this meeting.