Upper Darby committee backs accelerated opt-out path, limiting tax increases to Act 1 adjusted index

Mr. Rogers, presenting for the district administration, recommended that the Upper Darby School District pursue an accelerated opt-out resolution for the 2026-27 budget, which would limit any tax increase to the Act 1 adjusted index of 5.1%.

"The 2026-27 base index is 3.5% and the adjusted index is 5.1%," Mr. Rogers said, summarizing the Act 1 figures released for the coming school year. He explained that a preliminary budget would preserve the district’s ability to seek exceptions (for retirement costs, special education, or a voter referendum) to exceed the adjusted index, while an opt-out resolution would commit the district not to raise taxes above that adjusted index.

Mr. Rogers displayed a decade of district tax increases against the Act 1 base and adjusted indices and noted that Upper Darby has generally kept increases near or below the base index in recent years, with a 2.5% increase in 2025-26. He also told the committee that recent state “adequacy” and tax-equity funding carried a stipulation that districts accepting those funds cannot raise taxes above the adjusted index; because the 2025-26 budget included such funding, the district may be prevented from exceeding the adjusted index regardless of its local decision if similar state funding continues.

"Our recommendation as the administration would be to go down the path again of the opt-out resolution," Mr. Rogers said. "It would limit us to increasing taxes no more than 5.1%... and for various reasons why we would recommend that one of which is the hope that the adequacy and tax equity funding continues to be put in the future year budgets."

Committee members voiced support for the administration’s recommendation during the meeting. One member thanked staff "for not taxing the taxpayers to the highest" and another described the trade-off of staying under state guidance as a "catch-22," saying that consistently undershooting the suggested increase could signal to Harrisburg that the district does not need additional state funds.

Mr. Rogers walked the committee through the two timeline options: if the board pursued a preliminary budget, the committee would ask the board to adopt a resolution authorizing display and advertising at the Dec. 2 voting meeting, publicly display the preliminary budget by Jan. 29, 2026, and vote on a preliminary budget on Feb. 10; the accelerated opt-out path would seek adoption of the opt-out resolution on Dec. 2 and proceed to the committee’s April budget presentation, with a proposed final budget to the board on May 12 and final adoption at a June special voting meeting.

The committee indicated support to move forward with the accelerated opt-out resolution; the administration will present formal materials and next-step motions at upcoming meetings as the district proceeds through the Act 1 timeline.