Pennsbury Proposes $278.4 Million Budget, 3.4% Tax Increase

The Pennsbury School District is planning a tax hike for the upcoming fiscal year, as district officials have warned residents to expect in recent years.

The preliminary final budget outlines $278,438,550 in spending for the 2026–2027 school year.

To cover the gap between the proposed expenditures and total revenues of $273.9 million, the district plans to use $4.4 million from its fund balance.

As part of the spending plan, property taxes would increase by 3.4 percent, which translates to an additional $287.23 for a median assessed home in the district.

Last Thursday evening, the school board approved authorization for a first major bond issuance of up to $105 million to finance construction of the new $269.5 million high school in Falls Township.

District officials advised that additional tax increases should be anticipated in the coming years as general obligation bonds are issued through the 2029–2030 fiscal year to cover the project. The resulting debt will be due over the next three decades.

Superintendent Dr. Thomas Smith said the budget allocates $21 million to debt service.

“Debt service, which we planned for, which we knew was coming, is up. This is the debt service that we will increase to pay for the new high school project,” Smith said.

Pressure on the budget comes as special education costs are rising 6.23 percent year over year, while specialized transportation for students with complex needs is jumping 37 percent.

Salary and benefits make up 80 percent of the overall Pennsbury budget and are rising 2.3 percent year over year.

Pennsbury has locked in major union contracts through 2030–2031 to establish better financial forecasting.

“Eighty percent of our budget is about going up about 2.3 percent. It’s really the other items in the budget – the things that are hard to control for us – that are causing the budget to increase,” Smith explained.

Among the fluctuating costs putting pressure on the budget are fuel and utilities, with the district budgeting more money for gas, electricity, and fuel expenses.

“Something we’re all feeling at the pump is the cost of gas, electricity, fuel. We’re seeing, we’re budgeting a 27% increase for that year over year,” Smith said.

The regional Bucks County Technical High School budget, which requires Pennsbury’s approval, is increasing 4.1 percent to $36,572,626.

Charter school costs have reached at least $6.7 million, with additional increases expected when final bills arrive.

The district is implementing several cost-saving strategies to help reduce financial pressure.

Officials plan to reduce positions through attrition as employees retire, evaluate whether vacant roles actually need to be replaced, and find innovative ways to scale back overtime hours and substitute costs.

“We are going through literally every line item to find additional savings,” Smith said, noting that overtime and summer hours have grown significantly in recent years.

The majority of Pennsbury’s revenue is generated through local taxes and sources. The district receives just over $65 million from the state and $4.8 million from the federal government.

The district serves 9,600 students and employs 1,700 staff members across 15 buildings.

Smith said the proposed budget maintains the district’s extensive educational programming.

Pennsbury holds an “A” rating from niche.com for its academics, arts, and music programs, and its athletic programs also carry an “A” rating, Smith said.

The district runs over 100 extracurricular and co-curricular activities alongside 88 competitive teams, which includes four newly added programs.

“We continually win awards regarding the quality of our programs,” Smith said.

The school board is scheduled to vote on the final budget at its meeting next month.