Pennsbury Approves Tax Increase With 2026-2027 Budget

The Pennsbury School Board has approved a $278,438,550 spending plan for the 2026-2027 academic year.

The approved budget includes a 3.5 percent tax increase and draws from district reserves to close a remaining funding gap.

Total expenditures for the district will outpace its projected $273,956,225 in revenue. It will require Pennsbury to use as much as $4.4 million from the district’s fund balance to cover costs.

“The vast majority of our budget comes from local real estate taxes,” Superintendent Dr. Thomas Smith said, adding that local sources generate roughly $202 million in revenue, while state funding provides another $65 million.

Staff costs make up the bulk of the district’s spending, with salaries and benefits consuming between 75 percent and 80 percent of the overall budget.

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

Several rising costs contributed to the projected higher expenditures for Pennsbury.

Special education services saw a 6.2 percent year-over-year increase.

“We are legally required, but also morally and ethically required, to provide the best possible services to our students with special needs,” Smith said.

Additionally, debt service rose by 20 percent compared to last year.

District officials said the increase was expected as part of the financial planning for a new high school that is under construction in Falls Township.

Specialized transportation costs rose by 37 percent year over year to reach $3.9 million annually.

Utility bills are projected to jump by 27 percent, impacting gas, electricity, and fuel.

The district’s contribution to Bucks County Technical High School rose 4.1 percent for the upcoming school year.

Charter school costs are expected to remain nearly flat compared to the previous year.

As a way to fight the rising costs, the budget includes spending reductions achieved through attrition rather than layoffs, Smith said.

Pennsbury eliminated two administrative roles and several professional and certificated staff positions as employees retired or resigned.

“Even as people might leave over the summer, we are constantly reviewing — do we need that position? Can we move positions around to help support our needs?” Smith said.

The district also curbed spending by reducing substitute teacher costs, educational leaves, overtime, and summer hours.

Looking ahead, the district is preparing for structural changes to its financial planning.

Kimberly Steffy will join Pennsbury as its new chief financial officer this summer, and the district plans to transition to a zero-based budgeting process for the 2027-2028 school year.

“Rather than rolling over a budget and saying you got $10,000 last year, you get $10,000 this year — everybody has to justify every expense they make using tax dollars,” Smith said.

Pennsbury officials have advised residents that tax increases should be expected in the coming years as general obligation bonds are issued through the 2029–2030 fiscal year to cover the new high school project. The resulting debt will be due over the next three decades.