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ted.dobracki's avatar

Thanks for your continued interest about EPSD.

I still kibitz frequently even though my term on the board ended nearly half a lifetime ago.

Most of my comments are related to finances. I warned them in 2023 when a retiring board made a rushed vote about a proposed K8 realignment what I believed the financial limits would be, and then in 2024 and 2025 I suggested full Act 1 Index millage increases to effect what they could afford. Now it seems that an undefined $75 million option might be barely affordable, which is essentially congruent to the total $100 million figure I suggested for all K12 capital I suggested back then. In 2024, I also told them about UMSD's 8 year plan for its new HS. You also wrote here on Halloween 2023 about EPSD's $250-325 million plan.

Here is my latest letter to EPSD, about a week ago:

Folks,

Although I can’t make it to your 3/9/2026 meeting, I’m particularly interested in the item 5 presentation and discussion about the budget / long range capital and fiscal plan.

My three main questions are:

1) Will anything be included for HS projects now? (In the fall of 2023, info was promised for Spring 2024, and in the fall of 2025, info was promised for this spring).

2) For the K8 schools, I have serious questions about the MS costs. The costs for construction at the MS for the ES rezoning / non-realignment option seem huge, even without expansion. Perhaps there are reasons for that like areas of the buildings which are obsolete, worn out, needing to be modified for non-traditional uses, or otherwise unsuitable. Are these really all needed? (The same could be true in the realignment plan, but it's more dramatic for the case without a MS expansion)

3) The 2015A&B Bond Issue Preliminary Official Statement shows an Eyer capacity of 1350 pupils and an LMMS capacity of 1192 pupils. If these numbers are correct, isn't there enough space in Eyer for all of 5th and 6th grades already? It seems like we are working from lower baselines now, but there might be an explanation.

Two other points:

4) My FL area school district is currently looking at closing several schools because of over-capacity, which they project is only going to get worse because of declining birth rates. Your latest demographic study has a lower case with barely static enrollment – perhaps it might be even lower now.

5) I appreciated the new graph showing historic and projected debt service and capital reserve expenditures shown on page 23 of the 2/23 presentation which shows a good attempt for preserving funds during the last few years. Sadly, that hasn’t always been the case:

In the 2009-10 budget, $16.2 million of debt service was 15% of all revenue.

In the 2014-15 budget, $15.2 million of debt service was 12% of all revenue.

The $10+- million for debt and capital in 2021-22 shown on the new chart is only about 6% of all revenue.

And the numbers for 2024-25 and 2025-26 are under 5% of all revenue,

Plus, the percentage will get lower even if the capital allocation remains the same since the total budget will naturally grow over time.

This is what I warned about a decade ago when the old debt service was retiring and more of it should have been preserved for future capital needs then.

Ditto my suggestion to you two years ago garnered from Upper Merion's 8-year financial plan for their new HS.

Good luck.

regards, Ted

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