Centennial staff outline budget shortfall in five-year forecast; district offers a PA 1000 rent/property-tax rebate option

Mr. Greenwood, a district staff presenter, reviewed the Centennial School District’s budget outlook April 22 and said the district expects multi-year operating deficits unless revenue or expense patterns change.

Greenwood told the Committee of the Whole that the board is working with administration to reduce controllable costs and that locally driven revenue (largely real-estate tax receipts) makes up the overwhelming majority of the district’s revenue. He said the board’s budget-development calendar targets a June 10 meeting to adopt the budget and warned that failure to adopt a budget by PDE deadlines “risks possible withholding of state funding.”

Why it matters: Greenwood showed a five-year forecast that projects deficits each year as expense growth outpaces revenue growth. He said four categories (special education, pension/PERS, charter tuition and debt service) account for roughly 44% of the general fund and are largely beyond short-term local control.

Key points from the presentation

• Rent/property-tax rebate (PA 1000): Greenwood gave a public-service reminder that residents who filed the Pennsylvania PA-1000 for calendar year 2023 (filed in 2024) may qualify for an additional Centennial School District rebate. He said, “The deadline to file is June 30.” The district is offering an additional Centennial rebate equal to 15% of the state rebate; eligibility depends on qualifying for the state program and on the district having a surplus to fund the local supplement.

• Forecast drivers and midyear credits: Greenwood said the Bucks County Intermediate Unit (BCIU) midyear estimate shows an anticipated roughly $2.7 million credit to the district because of changes in out-of-district placements and other adjustments; he said the district plans to apply that credit to current-year obligations and avoid rolling deficits into next year’s contract.

• Mandated costs: Greenwood emphasized that special education costs have risen sharply and that employer pension (PERS) rates could add between $400,000 and $800,000 annually in coming years, making long-range planning essential.

• Controllable costs and requested analysis: Greenwood said the administration had asked each school and department to identify reductions (he set an initial threshold of 5% reductions as a planning target) and to describe pain points those cuts would cause. Board members asked for more detailed line-item lists; Greenwood said those reports and bills lists are part of the weekly update and can be presented in more accessible formats.

Related budget motions and items discussed at the meeting

During the meeting the board approved multiple consent and purchasing items (personnel agenda, software contracts, device policies and more). Greenwood said the district is examining refinancing options to reduce debt service and is tracking volatile factors such as potential tariffs on technology imports.

Ending and next steps

Greenwood said he will provide the board with more granular reporting—bills lists, staffing breakdowns by building and the PA 1000 rebate tiers—via the weekly update and future meetings. The board’s adopted calendar currently targets June 10 for formal budget adoption; Greenwood said he was “keeping my fingers crossed” but stressed the importance of meeting PDE timelines.

Selected quote

“The deadline to file is June 30,” Greenwood said regarding the PA 1000 filing that triggers district rebate eligibility.

Unresolved/clarifying details

The presentation projected a significant multi-year structural shortfall but did not change any policy at the meeting. Greenwood committed to follow up with specific numbers (detailed bills lists, exact rebate tiers and a schedule of departmental reductions) in future board materials.