The Upper Perkiomen school board voted unanimously last week to approve an $85.088 million budget for the 2025-26 school year with a 3.5 percent tax millage increase. At that rate, the district's average property owner will pay an additional $144.85 in taxes.

            "I would like [the tax increase] to be lower," Member Sarah Bieber said.

            Business Administrator Drew Bishop projected a $4 million transfer from the general fund to fill a budget deficit. He identified approximately $1.1 million in savings due to continuing administrative analysis, and projected a $2.6 million budget surplus during a finance committee meeting earlier this month.

            Member Peg Pennepacker cast her vote following a long pause during a roll call vote during the meeting. Last month, she delivered a list of options by which the district could save money and threatened to withhold her support if some of her suggestions were not implemented.

            According to Board President Melanie Cunningham, the size of the increase reflects the district's ongoing efforts to balance difficult priorities. Reading from a prepared statement she said the board's decision to reduce a projected deficit by $600,000, as recommended by the committee in May, reflects its ongoing efforts to balance difficult priorities.

            Cunningham acknowledged that the board is facing an incredibly challenging financial situation.

            "We recognize that our community has experienced periods of high taxation in the past, and we at times have chosen not to raise taxes to ease that burden, particularly for those on fixed income," she said during the June 19 meeting.

            The outcome of the district's current negotiations with the Upper Perkiomen Education Association will have the most significant impact on the budget since teachers' salaries and benefits represent the largest percentage of the budget, according to Cunningham. The teachers' current agreement expires at the end of the current school year.

            "Our collective goal is to be fair to our taxpayers and our teachers, both of whom we deeply value and appreciate," the board president said. "At the same time, we must also address our structural deficit in a responsible manner. Unfortunately, these goals are often at odds with one another and impact our different constituencies in different ways. We can't make every constituency happy during a challenging revenue stream."

            The final budget includes an additional $542,513 in revenue previously projected by Bishop. 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. During the June 9 committee meeting, the business administrator also predicted 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.

            In a separate action item, the board voted to approve 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 during the most recent committee meeting. 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.

            Following the vote, Pennepacker encouraged her colleagues to continue to grapple with the district's financial issues. She said the board must immediately focus on the 2026-27 budget, encouraging all committees to take the issue seriously when the meetings resume in the fall.

            "Unless we roll up our sleeves and start to think out of the box, we're going to be in big trouble," Pennepacker said.

            Several members expressed a willingness to "dig in." Trina Schaarschmidt encouraged the board to seek outside funding. Leah Cianfrani proposed communicating with state legislators to stress the importance of supporting bills that promote fair school funding.