Mount Lebanon board hears $1.53 million preliminary shortfall; approves resolution authorizing reductions in professional staff

The Mount Lebanon Board of School Directors on March 17 reviewed the 2025-26 base budget showing a projected preliminary revenue shortfall of $1,528,081 and voted to approve finance agenda items that include a resolution authorizing reductions in professional staff for economic reasons for the 2025-26 school year.

The board meeting, held in Room D205 of Mount Lebanon High School with a Zoom option, included a presentation of revenue and expenditure assumptions by a district finance presenter and a discussion among board members and the superintendent about options to balance the budget.

The budget presenter said the district projects total expenditures of $126,647,338 for 2025-26 and that local real-estate taxes are the largest revenue source. Local revenues account for about 77 percent of the budget overall and real-estate revenue projections were described as driven by the Act 1 index and a district adjustment. The presenter reported a projected real-estate revenue increase tied to the Act 1 base index and noted the district has applied for Act 1 exceptions for special education and retirement; a Commonwealth response was expected by March 26.

The presentation listed these key figures from the board packet: projected preliminary revenue shortfall $1,528,081; projected expenditures $126,647,338; a projected federal revenue total of $559,891 (described as about 0.004% of total revenue); and an unassigned fund balance of roughly $2.1 million as of June 30, 2024. The presenter said the board would be asked to adopt a proposed final budget on April 21 and the final budget on May 21, and that a public budget forum is scheduled for April 7 at 6 p.m. in Room D205.

Board members repeatedly raised the impact of the common level ratio (CLR) changes in Allegheny County, citing a court injunction and subsequent appeals that reduced assessed values and, they said, have lowered taxable values available to school districts. Board discussion emphasized that the CLR declines have depressed district taxable value over multiple years and complicate budgeting under Pennsylvanialaw (Act 1) limits. Board member Weiland said, "This isn't a problem that confronts just us here in Mount Lebanon; this is a problem that confronts all school districts across the state," during a lengthy discussion of county and state responses.

Superintendent Dr. Fries addressed staffing options during the budget Q&A, saying, "Our goal is to not furlough." The superintendent and finance staff described steps the district prefers to take first: reassign staff, use attrition, modify programs, and evaluate equipment lifespans before relying on furloughs, while acknowledging a vote tonight was required to meet Pennsylvania Department of Education timelines for possible reductions.

The board took a single roll-call vote on a composite finance motion that included the treasurer's report, monthly lists of bills, budgetary transfers, a list of unusable equipment, the AIU program of services budget, the resolution authorizing reduction of professional staff for economic reasons, and a pilot (payment-in-lieu-of-taxes) agreement with Asbury Heights. The motion was moved and seconded; the roll call showed eight ayes (Mrs. Burdick; Mrs. Crabill; Miss Fleischer; Mrs. Gellman; Miss Genssel; Miss Guth; Mr. Hoffman; Mr. Weiland) and no nays or abstentions.

The finance presenter described assumptions embedded in the base budget: an Act 1 adjusted index applied to current real estate values (presented as a 4.7% applied figure in the packet), exceptions included for special education, flat state basic and special education funding in the projection, a 3.5% salary increase assumption, a 10% assumed increase in health-insurance premiums pending final rates, and a projected 3% increases to special-education and charter-school tuitions. The packet also showed a $721,000 deficit projected for 2024-25 if unaddressed and noted prior-year real estate refunds related to CLR appeals.

Members of the public asked questions during the residents' comment period about related topics. Two speakers requested follow-up information and context about the CLR effects and state responses; the board requested contact information for follow-up and reiterated the dates for the budget forum and subsequent votes.

The board's adoption of the finance agenda that included the staffing-resolution does not itself specify the names of individual employees to be reduced. The district staff said the required authorization applies directly to MLEA employees for the furlough process but that the resolution lists all employee work groups to show potential effects across classifications. The administration said formal staffing decisions will follow the staffing process and further board discussion; the administration reaffirmed its stated goal to minimize impacts on student programming and to avoid drawing down fund balance if possible.

The board set these next steps: a public budget forum April 7 at 6 p.m., presentation of a proposed final budget April 21, and a vote on the final budget May 21. The administration said final health-care rates will be available after an April 4 consortium meeting and that the Commonwealthresponse on Act 1 exception requests was expected March 26.

Ending: The board approved the finance agenda, including the authorization to pursue reductions in professional staff for economic reasons, by unanimous roll call. More detailed proposals on specific staffing changes and a proposed final budget will be discussed at the April 7 budget forum and at subsequent board meetings.