Dallastown board adopts balanced $138.0M 2025-26 budget, approves $4.4M capital transfer

The Dallastown Area School Board on June 12 approved a balanced $138,000,599 budget for the 2025-26 school year and voted to transfer $4,400,000 from the general fund into the district’s capital reserve fund.

Board members voted unanimously to adopt resolution 2025-04 establishing the tax rate and payment options for the 2025-26 fiscal year; the budget includes no tax increase. Finance staff noted the figures do not assume any new state funding that may come from Harrisburg.

The board also approved a resolution increasing the Homestead and Farmstead exclusion amount from $203.64 to $238.21, reducing the portion of local real estate tax that remains with the district while reflecting a corresponding state reimbursement.

Why it matters: Board members and administrators said the actions continue a multi-year strategy to build reserves for upcoming capital needs, preserve the district’s bond rating and avoid recurring operating reliance on one-time funds. “This has been an intentional plan,” Board President Tony Pantano said, noting the district’s capital planning began a year ago and is intended to limit the need for tax increases.

Key details: Business/finance staff told the board the district’s unassigned fund balance sits at about 8 percent, with assigned funds set aside for capital projects and a health care reserve. Board members reiterated that capital reserve funds are restricted by Pennsylvania Department of Education rules and intended for one-time capital expenditures rather than recurring operating costs.

Board action and votes: The budget resolution (2025-04) passed on a roll-call vote with nine board members voting yes. The $4.4 million transfer into the capital reserve and an amendment increasing an annual set-aside to $500,000 (tied to CPI and the budget) also passed on recorded roll calls. Board members who spoke in favor said earmarking capital funds now covers known near-term infrastructure needs — including roof repairs and other deferred maintenance — and protects the district’s credit rating when bonds are issued.

What board members said: Board members who supported the transfer cited the district’s multi-year capital needs list and the discipline of a designated reserve. “If you take out the discretionary projects in the first years, there’s $4 million worth of spending that’s mostly for keeping the building roofs from leaking,” said board member Andrew Spears, explaining his support. Board member Joseph Dauterweich said planning ahead “is a feature, not a bug.”

Looking ahead: The board also amended an earlier resolution to formalize ongoing annual contributions to the capital reserve and to set a minimum balance target. Administrators and the board said the policy includes a built-in ability for the board to pause contributions for a year if financial circumstances require it. The budget and related resolutions will be submitted to the Pennsylvania Department of Education as required.