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Mount Lebanon officials warn of state funding shortfall, present resolution to authorize potential staff furloughs for timing compliance
Summary
The treasurer reported a February deficit of $721,327 and administrators said they expect to present a base budget next week; the administration will recommend authorization to issue 60-day notices (furlough resolution) if required by state timelines but said their goal remains a balanced budget without furloughs or use of fund balance.
Mount Lebanon finance officials told the school board on March 10 that a shortfall in state funding is the principal driver of the district’s budget gap and that the administration will bring a base budget next week along with a resolution that would allow the district to issue 60-day furlough notices if legally required by Pennsylvania Department of Education timelines.
Miss Connolly, the district treasurer, reported the February 2025 cash transactions and the district’s projected 2024–25 expenditures and revenues as of Feb. 28. The report showed a deficit of $721,327; Connolly said the deficit had improved by $67,929 due in part to updated state revenue estimates. "Most of that came through other state subsidies," she said, listing items such as student teacher stipends, Ready to Learn funds, transportation, drivers education and a feminine hygiene grant.
Administration and board discussion emphasized that the deficit is primarily a revenue shortfall rather than overspending. Board members and Dr. Fries (administration) said district-wide expenditure reductions and attrition measures have produced substantial underspending — roughly half a million dollars — but that the missing state funding (about $1.148 million last year that was budgeted but not delivered) created the larger hole.
The administration said the base budget to be presented next week assumes conservative, flat state funding rather than relying on projected increases. The proposed budget would include raising real estate taxes to the index and using the Act 1 exception for special education services if the Commonwealth approves the exception and the board approves the overall tax increase.
Because Pennsylvania requires 60-day notice before adopting certain budget steps, the administration placed a resolution on the March agenda to permit issuing furlough notices (the required vote applies specifically to MLEA employees, the administration said). Multiple administrators and board members said the placement of the resolution is a legal/timing step and not an immediate plan to furlough staff: "Our intention is to present and pass a balanced budget without any reduction of staff," Dr. Fries said; he and other board members reiterated that the district’s objective is to avoid using fund balance or implementing furloughs.
Board members highlighted the district’s advocacy needs and urged community support for a more consistent property assessment process and for engagement with legislators. One director noted that in the previous budget cycle the district reduced staff by roughly 30 positions and that, had the state delivered the previously budgeted $1,148,000, the district’s staffing losses could have been larger.
The administration listed steps already taken to reduce costs: negotiating vendor contracts, attrition, reassigning staff where possible, identifying duplicate services, revising job descriptions, reducing overtime, issuing a January stop-spending memo, and meeting with legislators to seek relief.
Ending: No furloughs were authorized at the March 10 meeting; the board will consider the base budget and any formal resolution to authorize furlough notices at the upcoming meeting on March 17. Administrators said their working aim is a balanced 2025–26 budget without using fund balance or implementing furloughs.
