East Stroudsburg School District reports significant budget increases and staffing changes

The East Stroudsburg Area School District's Finance Committee convened on June 9 to discuss critical budgetary issues impacting the district's financial health for the upcoming years. The meeting highlighted significant trends in spending, staffing, and health insurance costs that could shape the district's fiscal landscape.

A key focus of the meeting was the projected budget for 2025, which indicates a slight decrease in revenue year-over-year. The committee revealed that the district's spending per student is set to rise to $25,006.71 in 2024, positioning East Stroudsburg above the state average of $22,900. This increase in spending is attributed to a rise in staffing levels, which have increased by 7.3%, despite a 4.8% decline in student enrollment since 2019.

The discussion also addressed the substantial rise in salary and benefits, particularly due to a new teaching contract. The district's salary expenses are projected to jump from $75 million in 2024 to $86 million in 2025, marking an increase of nearly $11 million. This spike is largely driven by a significant raise for teachers, which is expected to increase salaries from approximately $46 million to $54 million, a 17% rise.

The committee also examined the implications of staffing levels, noting that while the number of teachers has increased, there are ongoing challenges in filling certain positions, particularly in special education. The Finance Committee confirmed that all professional staff positions are currently filled, although there are some vacancies in support staff roles.

Health insurance costs emerged as another pressing issue. The district discovered a $1.6 million shortfall in payments to the health insurance trust, which was attributed to a failure to remit premiums for retirees. This oversight raised concerns about the trust's cash reserves, which fell below the minimum threshold required for self-funding. The district has since addressed this payment issue, but the projected health care spending for the year is anticipated to reach $27 million, reflecting broader challenges in the healthcare landscape.

In conclusion, the Finance Committee's discussions underscored the complexities facing the East Stroudsburg Area School District as it navigates budget constraints, rising costs, and staffing challenges. The committee's proactive approach to addressing these issues will be crucial in ensuring the district's financial stability and the continued provision of quality education to its students. As the district prepares for the upcoming budget year, stakeholders will be closely monitoring these developments and their implications for the community.