Shippensburg Area SD sees $590,000 fund‑balance gain; administrators weigh transfers to capital reserve and three tax scenarios

Caleb Barwin, district business staff, told the Shippensburg Area School District Budget & Finance Committee that the general fund fund balance was $17.2 million as of June 30, 2024, a $590,000 increase from the prior year. He said some of that improvement came from additional state “equity” funding and higher‑than‑expected local revenues, including investment earnings and earned income tax collections.

Barwin explained the district’s Act 1 adjusted index for 2025–26 is 5.3 percent, calculated from the state’s 4.0 percent base index plus a locally derived adjustment. He presented three budget scenarios: no tax increase, a 2.6 percent increase, and a full 5.3 percent index increase. Under the district’s assumptions (including a 95% collection rate and no new state aid beyond a possible 1% increase), the scenarios produced projected deficits of roughly $4.1 million (0% increase), $3.2 million (2.6%), and $2.3 million (5.3%). Barwin said those tallies include an assumed $200,000 transfer annually…