East Stroudsburg Area SD finance committee presents 2025-26 budget with multi-year deficit scenarios; forwards procurement and staffing recommendations to full​

The East Stroudsburg Area School District finance committee reviewed a second draft of the 2025-26 budget on March 10, hearing that the district faces a projected operating deficit and multi-year fund‑balance deterioration if current trends continue.

The presentation, delivered by Peter (staff member), said the district expects 2025-26 revenues of about $189 million against expenditures near $214 million, producing a projected deficit of $24,578,600 for the 2025-26 fiscal year under the assumptions used in the slides. The presentation included alternative scenarios, including a no‑tax‑increase year followed by 3.5% annual tax increases, and a worst‑case forecast that would drive the fund balance toward roughly negative $81 million by 2029 if deficits were not addressed.

Why this matters: The committee framed the presentation as an early warning and planning tool. Committee members were asked to consider a mix of expenditure reductions, targeted staffing changes and revenue options (including possible tax-rate changes) before the final budget vote in June.

Key budget details and context

- Enrollment and per‑pupil figures: The presentation showed regular enrollment declining from about 6,979 in 2015 to roughly 6,433 in 2025. Budgeted per‑pupil general‑fund expenditures increased from $23,744 (2020 AFR basis) to a budgeted $31,687 for 2025.

- Revenue adjustments: Local earned‑income‑tax revenue was increased in the draft from $4.3 million to $4.7 million based on recent collections (+$400,000). State aid projections reflected the governor’s proposals and a higher retirement reimbursement ratio (presenter said the district’s aid ratio is about 66%, up from prior conservative budgeting).

- Fund balances and reserves: The audited general fund balance at the end of the last fiscal year was reported near $50.5 million. The presenter projected an ending general fund balance around $18.0 million on 06/30/2026 after the draft…