Exeter Township SD flags $1.7 million shortfall; superintendent urges elevator replacement, staff attrition and cyber‑charter advocacy

Exeter Township School District administrators on March 18 presented a first draft of the 2025–26 general fund budget that shows an anticipated $1.7 million shortfall and recommends several steps — including using capital borrowing to replace a failing senior‑high elevator and eliminating one teaching position through attrition — to reduce pressure on the tax rate.

The presentation by Superintendent Christy Haller and Business Administrator Brian Fike outlined three budget scenarios for the board, with administration recommending eliminating one teaching position through attrition as its preferred step. Haller said the district is looking at a $1.7 million gap between anticipated revenue and expenditures and presented options that would translate to tax‑rate impacts ranging from about 3.25% to 4.0% depending on choices about filling positions and retaining the per‑capita tax. “We are looking at the majority of our our budget as being salary and benefits,” Haller said.

Why it matters: the district told the board local property taxpayers fund roughly 65% of the district’s revenue, the state about 34% and the federal government less than 1%. School leaders said that combination — plus mandated costs, inflation and other drivers — is producing the shortfall and that decisions the board makes in coming months will determine how much, if any, taxes rise.

Most urgent capital need: elevator replacement

Haller told the board the senior high school elevator’s original parts are no longer available and the unit “must be replaced at the cost of $1,100,000.” Business Administrator Brian Fike said the money for that project would come from existing capital borrowing tied to prior district projects, not from a new tax increase: “this is not money that would be added to the budget…this is money that the district has already borrowed…which this is a capital would be a capital project and would not add to a tax increase,” Fike said. Fike said the district’s current capital fund balance is about $1.1 million and, after anticipated rebates, could reach about $1.6 million but noted some borrowed funds must be spent or committed within statutory timelines tied to the bond terms.

Haller and Fike outlined constraints on the elevator project, saying the elevator shaft is original to the building, cannot be expanded in place without removing classrooms, and that the administration has identified an alternate stairwell location that would require loss of a stairwell but avoid cutting classrooms. Haller said administration will pursue available state infrastructure grants for ADA‑related projects in May.

Budget scenarios, staffing and library position

Administration presented three scenarios: (1) no positions eliminated and no per‑capita change (about a 3.75% tax increase in the presentation); (2) eliminate one teaching position through attrition (administration recommendation, about a 3.5% increase); and (3) eliminate that attrition position plus the senior‑high librarian (about a 3.25% increase shown). Haller emphasized the recommendation to eliminate one position by attrition rather than furloughing staff and said the district is tracking enrollment closely to avoid harming classroom instruction.

On the senior‑high librarian, Haller explained the role differs from classroom teachers and said eliminating the position has been discussed previously; she said a previous high‑school English retirement creates an opportunity to shift staffing but that a move to a partly non‑certified library support model would require negotiation with the union and additional planning. “Once we get to that place with…high school library, having a full‑time librarian is also very questionable,” Haller said as she described long‑term options to remodel the library into a digital, collaborative space.

Food service and federal funding risk

Food service staff told the board that much of the district’s school‑meal program is federally supported and that cuts at the federal level could sharply raise costs to families. A staff speaker said, “If that [federal funding] is cut back, the rates…what we have to charge the students for lunches and breakfast…will just probably double.” The presentation noted current prices of $3.40 at the senior high and $3.10 at the elementary.

Cyber charter audit and legislative advocacy

Haller raised cyber charter tuition as a long‑running budget driver. The administration summarized recent Pennsylvania Auditor General findings and said auditors found instances of cyber charter spending on items such as “staff bonuses, gift cards, vehicle payments, and fuel statements,” according to Haller. The presentation noted the district spends roughly $2 million on tuition to cyber charters for roughly 80 students, while the district also operates an in‑district cyber academy with more than 100 students. Haller and board members discussed advocacy options; the board asked administration to consider an updated resolution and public outreach to legislators.

Other revenue and expense items discussed

- Capital borrowing and projects: the district reported it borrowed a little under $30 million in recent years for renovations and HVAC work, most of which is now nearly complete; the senior‑high auditorium project was removed earlier because of cost but remains under consideration. - Per‑capita tax: administration and board members discussed shifting the per‑capita levy into property tax; administration said per‑capita revenue is roughly $22,000 annually (the district also noted tax‑collector fees and delinquencies affect net receipts). - Activity and turf rental fees: the administration will provide comparative data on activity fees and turf rental rates; several board members said they do not support increasing fees for local youth recreation teams but are open to charging outside organizations.

What’s next

Administration said it will return with requested detail — a staffing/impact analysis for the librarian position, activity and turf fee comparisons, and further enrollment tracking — and that the board must adopt a final budget by the state deadline (June 30). Haller also said the district will apply for state ADA/building improvement grants in May for eligible projects.

The presentation lasted the majority of the meeting; no final budget votes were taken on March 18.

Ending

Board members directed administration to provide the additional materials and to continue refining the scenarios; the next committee meeting is scheduled for April 8, when the board said it will continue the budget discussion.