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 budget deficit. The capital reserve fund was stated at about $15.2 million; combined reserves were described as roughly $33–34 million.

- Cost drivers called out: Health‑care costs (notably prescription drugs) and special‑education placements were singled out as major cost drivers. The presenter noted prescription drug costs up ~23% and medical costs up about 9% in recent projections; the district’s special‑education population was noted at about 22–23% of students compared with a regional average near 15%.

- Department and building budgets: The finance staff said they provided line‑by‑line departmental views. The presenter said some historic line items had been corrected (examples: library and nursing lines that were underrepresented in prior budgets) and that principals and departments were asked to identify 5–10% reductions where possible.

Board and staff directions described during the meeting

- The administrative team will ask departments and schools to target 5–10% reductions and return revised budgets for the April finance committee meeting.

- The presenter identified roughly six anticipated retirements whose positions may not be refilled; those attrition savings were described as part of the plan to reduce staffing expense (the presenter said the six positions were not yet reflected as savings in the draft budget).

- The finance staff will produce three budget options for the board’s consideration in April: a 0% tax change scenario, a mid‑range scenario (3.5% tax increase) and a high‑end scenario (the maximum, cited at 5.7%). The finance committee will recommend an option in May and the full board will vote on the final budget in June.

Procurement, facilities and other committee recommendations

The committee also moved several routine procurement and facilities recommendations to the full board for approval. The finance committee motion covered multiple items from the finance and properties & facilities agendas and was forwarded to the full board as a package; the committee recorded the recommendation as approved by voice vote and will present the items for formal approval at the next board meeting.

Votes at a glance (committee recommendation moved to full board)

- Appointment: Add Matt Krause to district bank‑signature authority and appoint him to complete Diane Kelly’s treasurer term ending 06/30/2025 (further reappointment to be considered in May). (motion forwarded to full board; voice vote recorded; committee outcome: approval to forward)

- Technology purchases: Apple computers for classroom teachers ($398,003.28) and HP computers for elementary administrative staff (amounts listed in agenda); Lenovo Chromebooks for K–5 and grade 9 (cycle purchase). (motion forwarded)

- Vehicle purchase: 2024 Chevy 3500 crew cab dump truck from Bonner Chevrolet (quoted $67,004.95; presenter said net cost after an $8,000 trade‑in would be $59,004.95). (motion forwarded)

- Senior tax‑rebate resolution: Update district application and income limits to follow Commonwealth guidelines for the 2025 senior rebate program. (motion forwarded)

- Facilities/capital projects: Multiple partial floor replacements and other capital projects recommended by the properties & facilities committee (specific line items A–F on the committee agenda; motion forwarded). The committee discussed bus‑depot option 3 and said an updated option and related dispatch staffing will return to the next properties & facilities meeting for review.

- Textbooks: Purchase of several listed high‑school and district science textbooks (vendor attachments were cited; the committee moved the recommendation to the board). (motion forwarded)

What committee members and staff emphasized

Committee members pressed for clarity on recurring vs. one‑time costs, asked which line items had been previously missed in imports (the presenter acknowledged a missing library line in last year’s import), and sought details about charter tuition and out‑of‑district placements (presenter said charter tuition in the budget was roughly $9 million and that out‑of‑district placements are driven by student needs and services). The presenter acknowledged liability‑insurance and benefits increases and described a plan to more tightly align budgeted figures with anticipated AFR outcomes to reduce year‑end variances.

Quotations from the presentation and committee

Peter (staff member) summarized the draft: "Overall, the budget has a 1.55 increase in total revenue over the 24‑25 budget ... the revenue is $189,000,000. The expenditures are a little under $214,000,000. So the projected deficit of $24,578,600." (presentation excerpt)

Dr. Vitale (Superintendent) and committee members directed principals and department heads to identify reductions and to bring revised budgets to the finance committee in April. The presenter also said the finance team will present homeowner impact estimates for the tax‑rate scenarios at the April meeting.

Next steps and timeline

- Finance committee: departmental follow‑ups and revised reductions to be developed with principals and departments; three budget scenarios to be prepared for the April meeting.

- Finance committee recommendation: committee will make a formal recommendation in May for which option to advance to the full board.

- Full board: final budget adoption and vote scheduled for the June board meeting; multiple procurement/facilities/textbook items forwarded by the finance committee will be presented to the board for formal approval at upcoming meetings.

Ending note: The presentation was explicit that the slides illustrated potential worst‑case scenarios and that staff intend to pursue a combination of expense reductions, attrition savings, and revenue options before finalizing the 2025‑26 budget. The committee asked staff to return specific revised numbers at the April finance committee meeting.