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District outlines seven budget drivers ahead of 2025–26 process
Summary
Finance staff reviewed seven primary budget drivers—including salaries (~$58.5M), medical costs (projected $11.1M), transportation and tuition increases—flagging near‑term pressures for the 2025–26 budget cycle.
Dallastown Area School District finance staff on Jan. 9 opened the 2025–26 budget process by reviewing seven primary drivers that will shape next year’s spending plan.
Presenting the overview, the district finance presenter said the salary total for the current year is about $58,500,000 and that salary cost pressures will remain a principal driver for 2025–26. "This will again be another big budget driver for 25, 26," he told the board.
Other drivers the presentation highlighted: - Medical/healthcare costs: current projections near $11.1 million for the year, up from $9.8 million in 2023–24; staff said they will receive a midyear review from the benefits consultant. - Transportation costs: increases to remain competitive for bus drivers after previous market adjustments and historic low spending during the COVID year (2019–20). - Intermediate unit (IU) services: the district has shifted some services in‑house (for example, speech and language) which reduces IU spending but raises district salary costs. - Tuition and specialized placements: payments to external programs (e.g., High Roads, River Rock) have risen from about $3.6 million in 2016–17 to roughly $8.1 million in the current year. - Energy costs and demand‑response participation: district purchasing approaches aim to smooth volatility but energy remains a variable driver. - Budget resolution set‑asides: the board’s resolution requires recurring set‑asides (technology, capital, debt), producing roughly $1.25 million the staff highlighted as new money to be budgeted.
Board members asked clarifying questions about specific lines and were told medical expenses are currently on track but remain sensitive to claim experience. Staff said the district will continue detailed reviews and provide updated reports to the board during the budget cycle.
The presentation was informational; no board action was taken.
