Solanco School Board adopts $75.9 million general fund budget, raises millage to 13.2708 mills

The Solanco School District Board of Directors on Tuesday approved the district’s final 2025-26 general fund budget, setting total proposed expenditures at $75,900,000 and adopting a proposed millage rate of 13.2708.

The budget presentation, given by Mrs. Tucker, outlined projected revenues of $74,400,000 for 2025-26 and an estimated 2024-25 year-end revenue of $76,000,006.81. The district expects a budgetary gap of roughly $1,500,000 for 2025-26 and a projected $600,000 increase to the fund balance for 2024-25.

Board members were told the budget reflects rising payroll and benefits (63% of total expenditures), a projected 8.1% increase in payroll/benefits for 2025-26, and cost pressures from inflation, higher benefit costs, and uncertain state support. Mrs. Tucker said Solanco currently holds about $10,000,000 in general fund balance, with $6,300,000 committed to various uses. She outlined options to manage the deficit, including a potential $3,000,000 transfer to the capital projects fund, drawing up to $500,000 from the hospitalization reserve and other discretional uses of committed funds. She noted the capital projects fund balance of about $26,000,000 is restricted to construction, capital improvements and debt service and cannot be used for day-to-day operations.

As part of the adoption package the board also approved a Homestead and Farmstead Exclusion resolution that incorporates state-required explanatory language describing how the district spreads unused exclusion dollars when eligible properties fall below the exclusion threshold. Mrs. Tucker said the district’s homestead/farmstead assessed-value exclusion is $10,647, which produces a maximum per-property tax reduction of $141.30 for eligible owners; she reported 189 properties fall below that exclusion amount and therefore do not receive the full reduction.

The board approved a tax-levy resolution tied to the Act 1 index, with Mrs. Tucker noting the state’s Act 1 index maximum for the district is 4 percent. Under the adopted millage and assuming the district’s assessed value reflection rate remains at 96%, a property with $100,000 assessed value would pay roughly $51 more per year under the proposed increase.

Board members asked questions about the drivers of payroll increases and whether recent collective-bargaining premiums explained the bulk of the rise; Mrs. Tucker and district administrators said the current contract’s first-year premium and an overall trend toward hiring more experienced (and therefore higher-paid) teachers contributed to the increase. The board also heard that federal ESSER funding that previously supported some programs will continue to wind down and that uncertainty over Pennsylvania Department of Education (PDE) restructuring may affect future guidance and revenue flows.

The board voted to: adopt the 2025-26 final general fund budget (motion approved); adopt the Homestead/Farmstead resolution (motion approved); adopt the tax-levy resolution (motion approved); and approve a preliminary fund-balance commitment package (motion approved). Several routine finance reports (May general fund, capital project fund and cafeteria fund reports) were also approved.

The board’s action lets the Lancaster County Tax Collection Bureau proceed with printing and distributing tax bills under the new levy schedule, pending final audit and any technical adjustments after the close of fiscal year 2024-25.

The district’s administration said they will continue to monitor revenues and expenditures through the summer and may recommend further adjustments or transfers after the fiscal-year close.

Ending: The budget adoption sets the district’s financial framework for 2025-26 while leaving several management levers available to address the projected shortfall; the board will reconvene in August for the next regular meeting and to finalize any year-end transfers that auditors recommend.