East Stroudsburg finance committee hears budget shortfall, approves vendor deals and program purchases

East Stroudsburg Area School District finance staff told the committee on Feb. 10 that the district faces a multi-year structural shortfall and will need policy choices or spending reductions to close a forecasted gap.

Finance staff presented a preliminary 2025-26 budget projection showing roughly $189 million in projected revenue versus $213 million in expenditures and a projected shortfall in the $24.5 million range, though administrators said current trends point to a likely realized deficit closer to $7 million to $8 million if conditions hold. The presentation and subsequent discussion also covered declines in assessed commercial values, a pending state "tax equity supplement," cyber charter tuition costs and a set of procurement and program votes the committee moved forward.

Why it matters: The committee's work sets the district's preliminary budget direction ahead of the May preliminary-advertise and June final adoption deadlines. The fiscal picture described by staff ties directly to proposed millage choices, resilience of the general fund and program-level decisions the board will face in coming months.

Budget picture and context

District finance staff summarized recent revenue and assessment data and explained why the district is reporting ongoing pressure from commercial assessment appeals. Staff said Monroe County assessments show about a $12.8 million decline year-over-year while Pike County assessments rose slightly. The presentation noted pending assessment adjustments on large properties (identified in the presentation as Exploria and Shawnee) that could further affect tax base totals.

Staff briefed the committee on one-time and timing-related items that affect the near-term presentation of the books: the district is expected to receive a state "tax equity supplement" (the presentation cited roughly $5.5 million) but staff said those dollars cannot be applied to 2024-25 operational needs until the next fiscal year. Administrators walked the committee through line items that drove spending increases, including roughly 4.8% growth in salaries and an 11% increase in health insurance. Purchased services and charter-school tuition line items were highlighted as upward pressures; staff said charter/cyber tuition was approximately $8.95 million in the current budget.

Administrationresponse and next steps

Finance staff told the committee they will deliver updated monthly forecasts and three budget-option scenarios in March showing (a) no millage increase, (b) small increase and (c) an index/increase path. Staff also said they will return in April with a "needs versus wants" report to identify possible non-personnel reductions.

Key procurement and program items approved or forwarded

- Local tax-assistance district extension (10-year): The committee approved a 10-year extension request tied to the district noted by staff as supporting recent private investment in the township. Staff presented preliminary estimates that the district would see about $289,000 annually from properties captured by the program (figure presented as preliminary). The committee moved the extension forward for board action.

- Cisco network upgrades (E-rate): The committee approved a replacement of network switches at both high schools as part of the district's E-rate project. The presentation listed a total project cost of about $247,930 and noted the E-rate program will cover the majority of eligible costs, leaving a modest local share.

- Quadient mail/assembly machine yearly agreement: The committee approved moving forward on a replacement/lease arrangement with Quadient. The presented annualized cost was displayed as $1,792.44; staff also explained a complex multi-tiered monthly pricing schedule and said the district has been paying on an older machine that has been out of service for seven to eight months and that they will seek refunds or adjustments for service not rendered.

- Coca-Cola vending/sponsorship contract: After reviewing proposals from Coca-Cola and Pepsi, the committee voted to proceed with a Coca-Cola agreement. Staff summarized the Coca-Cola package described in the proposal as including a one-time signing bonus ($14,000), an on-field sideline product/stipend, and in-kind product donations. Staff emphasized the vendor pricing differences on case prices and minimum delivery quantities and said Coca-Cola's per-case pricing would be materially more favorable for booster clubs, PTOs and concession sales than the Pepsi proposal used in recent years. Staff said they would confirm that an existing St. Luke's Gatorade donation for food-insecurity programming would not conflict with the Coca-Cola agreement.

- Curriculum purchase: Superkids reading program: The committee approved purchase of the Superkids early-literacy materials; the procurement amount on the agenda was $93,008.72 and staff said the purchase is included in the current 2024-25 budget.

- Properties and facilities items: The committee approved a package of facilities items (including a high-school fire-alarm proposal, graduation chairs for North and South, and work-phase payments/change orders related to storm-pipe construction), which staff said will help complete ongoing projects and reduce recurring rental costs (graduation chairs to be district-owned going forward).

Votes at a glance

- 10-year local tax-assistance (extension): approved (voice vote; committee moved item forward for board consideration). - Cisco network switches (E-rate): approved (voice vote). - Quadient mail/assembly machine annual agreement (not-to-exceed presentation amount): approved (voice vote); staff to pursue refunds/adjustments for nonfunctional older machine. - Coca-Cola vendor/sponsorship agreement: approved (voice vote; staff to finalize contract and confirm no conflict with St. Luke's Gatorade donation for food-insecurity programming). - Superkids literacy materials: approved (voice vote). - Properties & facilities package (items AthroughE on the agenda, including graduation chairs, fire alarm, storm-pipe payment/change order): approved (voice vote).

What committee members pressed on

Committee members asked for more detail on assessment timing and the mechanics of how assessment appeals and county-level reassessments affect district millage allocation (the district spans Monroe and Pike counties). Members asked staff to document exactly when state supplement dollars become legally available for use and to provide clearer monthly forecasts on the gap trajectory toward the June final budget. Members also asked for written follow-up on the Quadient service dispute and confirmation in the Coca-Cola contract about the St. Luke's Gatorade donation.

Ending

Staff said they will return with revised forecast scenarios in March and a needs-versus-wants prioritization in April, ahead of the district's May preliminary budget and June final adoption schedule. The finance committee's next meeting was set for March 10 at 5:30 p.m. (in-person and via Zoom).