District Officials Warn of Critical Savings Shortage and Potential for Above-Index Tax Hikes
The TL;DR
- Financial Alarm: The district is facing a “severe budget situation” after exceeding its 2024-2025 budget by over $3 million, leaving the “fund balance” (savings) at a critical low of $3 million—not enough to cover a single month of salaries.
- Potential Tax Hikes: In a split vote, the Board decided to keep the door open for seeking “exceptions” to the Act 1 index, which could allow for a tax increase higher than the standard 4.2% limit.
- Cost-Cutting Measures: To save an estimated $400,000, the Board approved moving from one-to-one Chromebooks to classroom carts for students in kindergarten through second grade.
The Big Vote:
Act 1 Index and Budget Exceptions
In a move that signaled the gravity of the district’s financial woes, the Board voted 8-1 to authorize the administration to seek all applicable legal exceptions to the Act 1 tax index. While the standard tax increase limit for Bensalem is currently 4.2%, these exceptions—often related to rising special education or pension costs—would allow the district to raise taxes further if necessary.
Board President Dr. Deborah King was the lone “no” vote on the measure. Other members, including Karen Winters and Heather Nicholas, clarified that their “aye” votes were intended only to “leave the door open” while the final budget is developed.
Public Comment Highlights
- Legislative Absence: Multiple board members expressed frustration that local state representatives, specifically Casey Tomlinson and Frank Ferry, did not attend or send staff to a recent legislative breakfast to discuss school funding.
- Special Education Support: Board member Fernandez emphasized that while special education costs have contributed significantly to budget overages, the Board does not “begrudge” these services and remains committed to providing quality education for all children.
Financial Update
The district’s financial health dominated the evening. Business Manager Mr. Steffi and Superintendent Dr. Lee revealed that unanticipated costs in special education and charter school tuition (specifically School Lane Charter) have crippled the district’s savings. Board member Fernandez noted that prior boards had kept tax increases low for years, leading to what she described as the “underfunding” of the district.
Other Business
- New Legal Counsel: The Board voted to appoint Hill Wallack LLP for legal services at a rate of $200 per hour for partners.
- AI Policy Approved: Despite a “nay” vote from Mrs. Fernandez due to concerns over a “slippery slope” for student writing skills, the Board approved Policy 815.1 regarding the use of Generative AI in education.
- School Safety Hero: The Board recognized Belmont Hills staff member Donna Heimer Smith, who performed the Heimlich maneuver on a choking student in December.
- New Literacy Hire: Stephanie Pratt was hired as an administrative leader focused on literacy, despite one dissenting vote due to a desire for a hiring freeze.
Next Meeting: The Public Relations committee will host a budget Q&A session on February 3rd at 7:00 PM at the High School.
