Souderton Area School Board Members Disappointed by Proposed State Funding Increase

John Worthington | The Reporter•

The Souderton Area School Board finance committee is expressing some frustration at the school district’s proposed 2024-2025 state funding increase, the lowest in years despite soaring special education costs.

The frustration came during a 2024-2025 budget status presentation by administrator Michael Taylor. Under Gov. Josh Shapiro’s proposed budget, the district would receive an increase of less than $500,000, including an estimated $136,000 increase for special education services despite the costs of such services growing by approximately $4 million annually, Taylor said.

While Shapiro’s budget includes over $1 billion in additional school funding, Taylor said that 80% of the funding will be allocated to low-income school districts that have enacted maximum property tax increases in recent years. Board members described feeling "penalized” for being fiscally responsible.

"It’s attributed to the district being responsible to taxpayers and not doing max tax increases all the time,” said Taylor. "And now the state’s saying, ‘we’re not gonna fund you,’ pretty much forcing us to have higher taxes.”

Taylor noted that the Pennsylvania school funding system primarily relies on local property taxes, with Souderton receiving two-thirds of its funding from local taxpayers. He characterized the system as a hindrance for bedroom communities like Souderton with meager business tax revenue.

As such, Taylor revealed that even the maximum allowable property tax increase of 5.3% would produce an estimated $5.2 million deficit under current projections, a "non-starter.”

"We cannot have a $5 million deficit,” he said. "We need to make sure that our operational revenues and operational expenditures balance.”

In the following months, Taylor said that the district will work on reducing expenditures and boosting revenue to shrink the projected deficit. He suggested trimming the facilities maintenance and operations budget, while stressing that any cuts will not impact ongoing construction, renovations or the multi-purpose turf field, which are all funded through capital projects. He also proposed more cost-efficient special education services, including in-house rather than contracted services.

In addition, Taylor said the district will continue monitoring local revenue sources and looking for allowable investments to maximize interest earnings. On an optimistic note, Taylor revealed that the district’s current interest earnings are over $1 million, a record high. He also noted that charter school tuition expenses are leveling off due to declining enrollment and that the district’s debt service is projected to drop by roughly $2 million in the coming years.

The final budget will be presented in June.

In other news, members received an update on the West Broad Street Elementary School renovation project. The upgrades will include new windows, doors, bathrooms, ceiling, flooring, lighting and a gymnasium roof.

The project also includes an addition on the north side of the building to replace the old modular building. The addition will house classrooms for one or two grades, art and music rooms, special services and miscellaneous materials that do not fit into the existing building. The addition will also feature a ramp to connect to the existing building, with matching brick and windows.

On the exterior side, the playground will be relocated to the back of the building to expand vehicle stacking space and prevent cars from backing out onto West Broad Street.

The district is awaiting preliminary final approval from the Franconia Township Board of Supervisors before taking the project to the Montgomery County Planning Commission and Conservation District. The final land development approval is projected for fall 2024, with construction expected to begin in summer 2025 and conclude in summer 2027.

The next Souderton school board meeting is on March 21 at 7 p.m. For more information, visit soudertonsd.org.

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