Southmoreland board adopts $37.1 million budget after heated debate over taxes and spending

The Southmoreland School District Board of Directors adopted a $37,104,530 final budget for the 2025–26 school year on June 24, approving local property tax increases after extended debate and a failed earlier vote.

The budget passed on a roll-call vote after the board reconsidered the motion; the final tally on the budget was 6 in favor and 2 opposed. The budget as approved includes a 1.99-mill increase for taxpayers in Westmoreland County and a 0.6587-mill increase for Fayette County and assumes state revenues that the business manager cautioned are not yet guaranteed.

Why it matters: The vote resolves how the district will fund operations, capital needs and debt service for the coming year. Board members and members of the public spent much of the meeting arguing over whether the proposed tax increases, administrator pay raises and outstanding capital needs are justified and whether the district should change spending instead of raising mills.

Board debate and context Business Manager Pam Mondock, presenting the finance package, said she had budgeted state revenues conservatively because the state had not finalized its budget. "I typically budget revenues conservatively because I would much rather have a conservative estimate of a revenue than basically going guns a blazing and end up in a situation where we're having to pull from the fund balance," Mondock told the board. She told the board the proposed budget balanced at $37,104,530 with local, state and federal revenues as presented.

Board members repeatedly returned to the district's long list of capital needs, a recap of assets and items outside the GESA project scope. Several directors said the district must build a long-range plan to address multiple large items that are not covered by current loan proceeds. "There is no plan at all for the primary center," Director Deborah Fike said during discussion, emphasizing the need for planning before additional borrowing or tax increases.

The board also debated the source and amount of recent debt taken for renovation and energy projects. Business Manager Mondock explained that the total debt service shown on some documents represented total district debt rather than the GESA project cost, and that the board had authorized a bond resolution with a not-to-exceed amount to provide market flexibility when bonds are sold.

Taxes, homestead credits and what happens if state aid is delayed The budget package included the district's annual actions required by state law: a homestead/farmstead allocation, continuation of Act 511 local taxes (described in the agenda as "act 5 11, the local tax enabling act 53 PS statute 6901") and formal adoption of real estate tax rates under section 6-687 of the School Code of 1949 (as noted in the meeting materials). The board approved the homestead/farmstead distribution and continuation of Act 511 taxes, and later adopted the proposed real estate tax levies on a roll call.

Board members asked what would happen if the state did not deliver the budgeted $20,492,306 in state aid. Mondock said the district would first tap assigned fund balance and, if necessary, reassign designated fund balance to maintain operations, acknowledging that some districts in the state use tax anticipation notes in similar circumstances. She said the district had about $1.6 million set aside in a fund balance designated for capital improvements and that continued monitoring of the state budget situation was underway.

Process and next steps The board paused and later recessed to reconsider the budget before ultimately approving it. Directors discussed options to amend expenditures or millage if a majority coalesced on specific changes; however, no successful amendment to reduce the budget or millage passed during the meeting. The district solicitor advised that a motion to reconsider must be made by a member of the prevailing side under standard parliamentary practice, and that specific amendments to the budget could be proposed and need five votes to pass.

Ending With the budget approved, the district has set revenue and millage levels for 2025–26. Board members signaled that planning for the primary center and the long capital list will continue to be a priority in coming committee meetings and that staff will report back on options if state aid changes.