Tax Increase Doesn't Solve Budget Shortfall in Hatboro-Horsham

With a 1.7 percent tax increase figured in, the Hatboro-Horsham School District is still staring down a nearly $850,000 budget gap for its roughly $90 million spending plan, officials said Monday night. 

But, Bob Reichert, the district's director of business affairs, pointed out during Monday night's school board meeting that . 

"We're continuing to budget for using about $3 million of our fund balance," Reichert said. 

To make additional cuts, district officials said staff reductions–preferably through attrition–would be necessary. Other cost-cutting measures being considered include charging students an activity fee for sports and band participation; scaling back bus routes for after-school activities at Keith Valley Middle School and the potential

Louis A. Polaneczky told Patch that the board was in a "discussion phase" regarding the student activity fee proposal and the potential for fewer school bus routes for extra-curricular activities. Both would be reviewed during the board's April 2 work session, he said.

All three proposed cuts combined would save the district just shy of $200,000.

The "big gorilla in the room," according to Reichert, is the Public School Employees' Retirement System, which is expected to cost the district more than $1 million more next year in higher contributions. Under the state's Act 1 index, the district's tax increase would not generate enough revenue to cover that expense in all its entirety, he said. 

For this year, Reichert said the district intends to use $300,000 of its reserve to help with the pension fund.

More cuts are needed before the board can adopt a final budget. The board is required by law to adopt a balanced budget by June 30.