2026-2027 Budget FAQ

Expenses are projected to increase 5.7%, while income is projected to increase 4.6%, creating a projected $1.37 million budget gap. District costs in several key areas are increasing at a pace that exceeds the state Act 1 Index: 

• Prescription costs (+55%)
• Utilities (+25%)
• Transportation contracts (+8%)
• Healthcare (6%)
• Contractual salary increases and benefits (+5%)
• Ongoing facility maintenance and capital needs

To responsibly address the projected funding gap, the School Board approved the the administration to move forward in developing the budget with a proposed tax increase of up to 5.1% (1.6% above the Act 1 Index with the Special Education exception).

Note: Applying for the exception does not automatically set the tax rate. It only provides the flexibility for the District to exceed the Act 1 Index. PDE must approve the Special Education exception. 

The Act 1 Index, set by the Pennsylvania Department of Education, limits how much a school district can raise property taxes without voter referendum. For 2026–2027, the Act 1 Index is 3.5%. To exceed that amount, a district must qualify for an exception or go to referendum.

WSD qualified for the Special Education Exception due to rising special education costs. If approved by the Pennsylvania Department of Education, it allow the district to increase taxes by 5.1% instead of 3.5%. 

Important: Applying for the exception does not automatically set the tax rate. It only provides the flexibility for the District to exceed the Act 1 Index. PDE must approve the Special Education exception. 

If the district applies the full 5.1% increase, the tax increase for a home valued at $400,000 would be:

• $158 per year
• $13 per month
• $0.43 per day

The actual impact depends on your home’s assessed value.

The district has worked to maintain competitive tax rates while sustaining high-quality programs and services. Wissahickon currently has the second lowest millage rate in Montgomery County.  Even if no other district increases their real estate tax rate, WSD will still be the 2nd lowest in the county. 

Montgomery County School District 2025-26 Millage Rate Comparison  

For 2026–2027:

Income:

• 80% Local (primarily property taxes)
• 19% State funding
• Less than 1% Federal and other sources

Expenses: Nearly 80% of costs directly impact students.

• 50% Salaries
• 30% Benefits
• 17% Departments (transportation, student services, technology, etc.)
• 3% Debt service and capital transfers

Contractual salary and benefit increases are the largest cost driver and comprise 80% of all district expenses. Salaries will increase to $70 million and benefits to $42 million.

PSERS (Pennsylvania School Employees’ Retirement System) contributions, which are are mandated by the state, total more than $23 million. Healthcare costs remain elevated, and prescription costs have increased approximately 55%. These are largely outside of local control.

Facilities costs continue to outpace budget capacity. Our buildings require ongoing maintenance, repairs, and capital improvements. Routine maintenance, aging systems (HVAC, roofs), and building needs cannot be met within the current funding levels, risking emergency repairs and higher long‑term costs.  

Long-term facility and infrastructure improvements are allocated $4.5M in the 2026-2027 budget, far below what is needed to sustain the district’s long‑term facility plan and well below our peers in the county. Delaying or underfunding capital work drives up future costs.

Underfunding facilities can lead to:

• Emergency repairs
• Higher long-term costs
• Deferred maintenance that compounds over time

If the district limits the increase to 3.5%, the gap widens to a shortfall of $2.86 million. Reductions will be required to close the shortfall. That could impact:

• Staffing levels
• Student services
• Program offerings
• Capital improvements

The School Board will continue reviewing options before final budget adoption.

The School Board will vote on the final budget at the June 1, 2026 board meeting. The district will continue refining the budget in the coming months and welcomes community engagement throughout the process. Budget meetings are as follows:

• 03/10/2026 – Finance Committee Meeting
• 04/13/2026 – Finance Committee Meeting
• 04/27/2026 – Board Work Session - Approve Proposed Final Budget
• 05/11/2026 – Finance Committee Meeting
• 06/01/2026 – Board Voting Session - Approve Final Budget

Visit BoardDocs for the meeting times and agendas