Upper Perkiomen taxpayers could be facing a smaller tax increase than initially anticipated for the upcoming school year. On Monday, the school board's Finance Committee voted unanimously to recommend a 2025-26 school budget with a 3.5 percent millage increase.

           At that rate, the average property owner will pay an additional $144.85 in taxes, according to information provided by Drew Bishop, the district's business administrator. Last month, the board voted to ratify a proposed final budget with a 4.9 percent millage increase that called for an additional $206.90 in taxes.

            During the May 8 meeting, President Melanie Cunningham – who also chairs the committee – told the audience that the board's goal is to reduce the final millage rate by four percent. The committee went further in its final gathering before the board is expected to vote to grant final approval on June 19 on the $85.088 million budget.

            "I don't like any of this," Cunningham said during the meeting. "The 4.9 percent increase gives everyone heart palpitations."

            A 3.5 percent millage increase would require the district to utilize $4.625 million from its general fund to fill a budget deficit.  Bishop's identification of approximately $1.1 million in savings due to continuing administrative analysis, and his projection of a $2.6 million budget surplus for the current school year – which expires June 30 – appeared to convince committee members to endorse a tax hike lower than initially envisioned.

            "I feel pretty good about that projection," Bishop said during the meeting.

            Four board members, not on the committee, expressed their support for the lower tax rate. However, Peg Pennepacker did not directly respond to a question asking if she felt comfortable approving a 3.5 percent millage increase.

            "Either we pay now, or we pay later," she said.

            Pennepacker told the members that she needed at least four board members to commit to work with her to control expenses moving forward if they want her to vote for the budget.

            During the meeting, several expressed a willingness to "dig in" on the issues.

            "Talk is cheap," Pennepacker said. "This is about what is next."

            Bishop's presentation identified an additional $542,513 in projected revenue. It showed $261,741 more in state gaming revenue, $225,000 more in earned income tax and a $68,306 increase in real estate revenue. The business administrator also predicts an additional $50,000 in interest income from the opening of a new high-yield account at Univest and $41,975 in federal Title 1 funding.

            The district is expected to save $114,000 in health insurance due to an open enrollment update, $90,000 in charter school expenses due to the Average Daily Membership calculation provided by the Pennsylvania Department of Education, $85,178 in salaries due to a line item review and $61,228 due to the reduction of one bus run. It also saves $20,753 by eliminating the addition of a soccer and track coach, according to Bishop's presentation.

            The committee also voted to support a three-year contract, with two option years, to continue with St. Luke's Health Network for athletic training services. The proposal for three full-time trainers will cost the district $60,000 next year. The total increases to $90,000 in 2026-27 and $130,000 the following year. The options include $175,000 for 2028-29 and 195,000 for 2029-30.

            Pennepacker – a retired public school teacher, administrator and athletic director – described the figures as a good deal for three trainers. According to Superintendent Allyn Roche, the cost of the third year would be less than if the district hired two of its own trainers.

            Upper Perkiomen's current five-year agreement with St. Luke's expires June 30. The district has been paying the health network $27,500 annually.