District finance director outlines peer comparisons, state budget uncertainty and rising special‑education and health costs

Tom Strickler, the district finance director, briefed the Elizabethtown Area School District board Feb. 25 on peer‑group budget comparisons, the governor’s proposed education budget and several revenue risks that could affect the 2024‑25 budget.

Strickler said the district used two peer groups — IU 13 peers and a five‑county comparison set — to assess taxes, revenue and spending. “When you're looking at somebody who has a much larger tax base or a much larger student body … it makes it difficult to see if we're making appropriate decisions when we're comparing,” he told the board as he walked through assessed value, millage and equalized mill comparisons.

On spending, Strickler said Elizabethtown ranks lower in per‑pupil spending for regular education but moves toward the upper half for special education costs. “Where do we stand? Are we spending exorbitantly on students or not really? Looks to me like in the regular ed area, we're low. In the special ed area, we're in the high end,” he said, adding that special‑education costs are largely mandated and beyond easy local control.

Strickler also summarized the governor's proposed budget, noting small movement in Basic Education funding and an increase in the Ready to Learn/adequacy allocations that the district cannot treat as guaranteed. “What happened was the governor took last year's adequacy and threw it on top of the foundation and then put a new amount in for adequacy. This is wonderful because it's $395,000 increase to Etown. However … adequacy is not guaranteed,” he said.

On federal funds, Strickler said the district currently expects $4.1 million in federal revenue (Title I, II, IV, IDEA B and medical access) but had received roughly $2.4 million to date and noted an assumed $1 million shortfall if no further federal dollars arrive. “If we get it, we're going to have total of $4,100,000 from the federal government… As of today, we have received $2,400,000. If we get no more, you have a hole or we have a hole,” he said.

Board members pressed for clarifications about specific line items. Strickler identified the health insurance fund as an area of concern: the health fund showed a negative balance of about $288,313 year‑to‑date and the district transfers a monthly pseudo‑rate from the general fund. “Your health fund is in serious problem,” he said, noting the district self‑funds up to $200,000 per claim and expects total medical expenses above $9 million this year.

Strickler said the district joined a health‑insurance consortium to stabilize costs but cautioned savings are not guaranteed and depend on other member districts’ experience. He also said some federal reimbursements (medical access) are paid a year later, which increases short‑term cash risk.

The finance briefing concluded with an administrative commitment to continue line‑by‑line budget review and to update the board as AFRs (Annual Financial Reports) and IU/IDEA figures are finalized. Strickler posted audit and budget materials to the district website and offered to provide additional detail on lunch debt and health fund line items to board members.

Quotes from the meeting reflect the mix of reassurance and warning: “I don't want anybody to get the idea that the IU didn't pay or what The IU uses our money,” Strickler said about federal IDEA pass‑through funding. He warned the board to plan conservatively: “I'm not comfortable putting that adequacy on top. If we get some of it, it's a win for us. If we don't get any, I'd rather not have to make up that shortfall in our budget.”

The board accepted the finance report later in the meeting by roll call vote; Strickler and board members said more detailed budget work would follow during the annual budget season.