Solanco School District projects roughly $2 million shortfall in proposed 2025–26 budget; board to display plan for public review

Sandy Tucker, Solanco School District business manager, told the board on May 5 that the district’s proposed final budget for the 2025–26 school year estimates total revenues of $74,410,834 and total expenditures of $76,521,936, leaving “an over $2,000,000 deficit.”

Tucker said the administration’s fallback plan, if revenues do not improve, would be to use $2,000,000 of the district’s existing fund balance to cover next year’s costs, which would reduce the district’s projected fund balance to about $8.3 million. “Even so, that would still leave about a hundred and $11,000 that would be a deficit that we would need to reduce,” she said.

The proposed budget reflects continuing uncertainty in federal and state funding sources after pandemic-era grants ended. Tucker told the board that Solanco has closed out ESSER grants and that some federal entitlement funding has declined; she noted federal Title II — roughly $300,000 for the district — is “in jeopardy.” She said the district’s federal grant receipts are a small slice of total revenue but fund positions and programs the district currently relies on.

Why it matters: the budget underlies everyday operations — salaries, benefits, transportation, and building maintenance. Tucker showed personnel costs account for about 62% of the budget (salaries 38%, benefits 24) and told the board she budgeted a 3.3% average payroll increase for 2025–26 while estimating health-care cost increases of 8% and prescription costs of 11.4%.

The presentation also spelled out local tax implications: the district is proposing a tax levy at the Pennsylvania Act 1 index limit of 4%, producing a millage of 13.2708 mills, an increase of 0.5104 mills. Tucker said that equates to a tax increase of $51.04 for every $100,000 of assessed property value. She also reported the district will receive $966,000 in Homestead/Farmstead gaming-fund money this year; she said the district will calculate the exclusion and bring a homestead/farmstead resolution to the board in June.

Discussion and next steps: trustees and administrators focused on options to reduce the projected deficit without cutting programs that have continuing benefit. Tucker and Dr. Bliss (district superintendent) said administration will review building-maintenance and transportation expenditures and look for underspending opportunities; Tucker said the district intends to present the proposed final budget for public display and advertising and to bring a final budget resolution for board approval on June 16. The district also is moving tax-collection operations to the Lancaster County Tax Collection Bureau, which Tucker said will handle printing and mailing tax bills once the levy is set.

The board voted to approve a resolution to display and advertise the proposed final 2025–26 budget; the vote was called and the motion passed (recorded as approved by voice vote).