Finance chair warns of rising mandatory costs; board approves playground additions, a $8,000 feasibility study and selects 2025–26 calendar

The Elizabethtown Area School District finance committee on Jan. 28 detailed budget pressures the district expects for 2025–26 and outlined where costs have grown most: intermediate unit (IU) contracts and contracted special-education services, charter and nonpublic tuition, transportation and utilities. Finance chair (and board member) Strickler told the board that a half-percent tax change equals roughly $350,000.

Strickler said key expense categories have grown markedly over the past five years: object 300 (professional/technical purchased services) rose by about $4.0 million; object 400 (purchased property services) rose about $827,000; and object 500 (other purchased services including transportation and tuition) rose about $3.3–3.4 million. He identified four items in object 300 — IU contracts for elementary and high school, and contracted special-education services — as principal drivers of the rise.

“We will not be able to change the mandatory expenses unless Harrisburg changes state policy,” Strickler said, urging the board to keep the $350,000-per-half-percent figure in mind as it considers potential tax actions next year.

Health fund and cafeteria

Strickler also told the board the employee health fund balance stood at about $186,000 at the end of the last fiscal year; by contrast, consultants tell districts the health fund should hold roughly four to six months of claims — the district’s annual health budget was stated as about $9,000,000, implying a recommended health-fund range of roughly $2.97 million to $4.5 million. Because the district pays some health-savings account (HSA) subsidies on July 1, Strickler said a low fund balance forces the general fund to temporarily subsidize health costs.

On a positive note, the district’s cafeteria fund (now shown as fund 51 under Pennsylvania Department of Education numbering) returned to the black in 2023–24 after a contract with Metz Culinary and stronger meal sales, Strickler said.

Board decisions tied to finances and facilities

During the business portion of the meeting the board took several votes connected to facilities and capital planning:

- Inclusive-playground equipment: The Educational Foundation had committed $5,000 and a private donor pledged $25,000 toward a $43,000 optional equipment package for “Phase 3” of the Bear Creek Inclusive Playground. The board approved procuring the additional equipment now on the condition that the foundation’s campaign is expected to raise the remaining approximately $13,000; several board members also said they planned personal donations. Roll-call votes recorded in the transcript show: Emery — yes; Gilles — yes; Lindemuth (female) — yes; Reid — yes; Regalman — yes; Schrum — yes; Wilson — no; Carter — yes; (Mr.) Lindemuth — yes. (Recorded roll-call entries in the transcript correspond to 9 recorded votes with one no.) Outcome: approved; administration will proceed with purchase and installation scheduling with vendor lead times.

- High school / middle school / district office feasibility study: The board approved paying $8,000 to hire an architectural firm for a second feasibility study that the mover said would deliver more detailed options, address HVAC/sewer specifics, and provide actionable cost components. Motion approved by roll call; individual votes recorded in the transcript show the motion passed. Outcome: approved; firm to begin work and offer options for short- and long-term capital planning.

- Full-day kindergarten: The board agreed (6–3) to take the previously tabled full-day kindergarten discussion back onto the agenda for further consideration; the vote was to untable the item and allow administration to present updated information at a future meeting. Outcome: discussion to be resumed.

- 2025–26 calendar: The board chose calendar Option 1 (start after fair week) over Option 2 (start during the last two days of fair week) by an 8–1 recorded vote.

What board members asked and next steps

Board members pressed administrators on several points: the causes of a $4.4 million increase in selected 300-object expenditures over five years; whether utility contracts can be hedged or reviewed for billing errors; and how quickly the foundation could finish the playground fundraising. A district vendor estimated playground equipment lead time at 8–13 weeks, creating urgency to decide by the next meeting if not tonight.

Administrators said the feasibility study firm would perform detailed testing — airflow, plumbing, and component-level cost estimates — and that the district would be heavily involved in site walkthroughs. The board approved the $8,000 engagement and the mover said the firm could present options to the board before the summer recess, if the district timeline allows.

Ending

The meeting closed after routine finance and personnel reports. The board scheduled follow-up work on short-term repairs and longer-term capital planning and asked the administration to report back on fundraising progress for the inclusive-playground additions and on the feasibility study timeline.