Council Rock Passes Preliminary Budget: Here Are The Details

NEWTOWN, PA — The Council Rock School Board at its May meeting voted to approve a proposed $303 million budget that would boost property tax rates by 3.5 percent in 2026-27.

The spending plan, which is available for public review on the district’s website between now and final passage on June 18, will cost the average taxpayer $241 more annually on a property assessed at the district’s average home value of $46,000.

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The vote by the board in May was only to advertise the budget for final adoption at the June 18 meeting.

District officials said while expenses are increasing across the board, revenue from the state and federal government have flatlined or decreased, shifting more of the financial burden to the local taxpayer.

"Costs are increasing at a much greater rate than a lot of the revenue sources that we have are increasing," said Director of Business Administration Tony Rapp. "Basic education and special education funding from the state are basically at one-tenth the growth that they used to have compared to prior years. Effectively we have less state money coming in," he explained. "While we have the same amount as prior years, as costs are rising the money we get from the state, when it comes to basic education and special education, does not go nearly as far as it used to."

The district is also facing a loss of interest income on its investments as interest rates are normalizing. "We will be lowering the number for next year," said Rapp. "Even though it's better than what I've seen most of my career, it's still lower than what we have been getting."

At the same time, said Rapp, costs continue to rise passed the Act 1 Index of 3.5 percent, the maximum percentage districts are allowed to raise real estate taxes in next year's budgeting cycle.

"We have been able to keep our total expense increase at less than four percent, which is pretty good considering we have contracts that increase by that amount," said Rapp. "We will have a budgeted deficit higher than we've had in past years, but less than we have in the current year."

On the revenue side, the district is projecting to collect $297.9 million, a $12 million increase over the prior year. That includes $230 million in local revenues from property taxes and the earned income tax, close to $66 million in state revenue and $1.4 million in federal revenue, which includes a $500,000 reduction in access funding.

On the expenditure side of the ledger, salary increases are the primary driver of the tax increase with new contracts in place with district teachers, administrators and support staff.

Under the spending plan, total salaries and benefits are budgeted to increase by $15.6 million, including $535,694 for administrators and confidential assistants; $11.9 million for the professional staff including this year and next year; $2.5 million for support staff; and $688,000 in other salaries.

The budget adds 14 new teaching positions to accommodate an increase in students requiring special education services. Also included is a new English Language Arts teacher at Holland Middle School.

The school board is scheduled to vote on a final budget at its June 18 meeting.

“I’m proud of the fact that in this budget the vast majority of the increase in spending directly impacts our students,” said board member Ed Tate. “It’s not on facilities. It’s not on extra curriculars. It’s on teachers and staff who work with students. That’s commendable.”

With that said, Tate added, “I’m really not thrilled with having to look at a 3.5 percent real estate tax increase, but we are in far better shape than a lot of the school districts in Bucks County. They are looking at some colossal tax increases elsewhere ... People may want to take a look at what's happening elsewhere and realize that while 3.5 percent may not be palatable, it’s comparatively rather good.”

"This is a higher increase than most of us would like but unlike other districts we won't have to exceed the Act 1 Index," said board member Tracey Osecki. "I'd also like to say that the additional positions that we are targeting here are working directly with students, particularly special education. As a taxpayer, I would like to see my tax dollars to toward that inner circle that's working directly with kids."

The administration plans on seeking board approval to renew the district's tax rebate program, which provides tax relief to low-income seniors and people with disabilities in the Council Rock community. Tax rebates in the 2025-26 school year have exceeded $200K so far, indicating that many residents are taking advantage of this state and local program.