Appoquinimink board finds $4.9 million gap in carryover, proposes tentative tax rates and $2.5 million in cuts

The Appoquinimink School District reported on June 25 that an error in its March financial projection and the timing of New Castle County reassessments have reduced an expected year-end carryover from about $7.9 million to an estimated $3.0 million, the board heard at a special finance workshop.

Board leaders said the district will present tentative tax-rate recommendations at a July 8 meeting and that staff have identified $2.5 million in reductions for the 2025–26 fiscal year. The district also said it expects updated assessment figures from New Castle County on or about July 1 that could change the recommended tax rates before the board’s July vote.

Why it matters: The shortfall narrows the district’s financial cushion just as the board prepares the annual tax warrant the county uses to bill property owners. Board officials said the error was in payroll timing and category misclassification that together lowered projected available cash and could affect carryovers and planning for next year.

At the workshop the board president said the March 31 financial position report had projected a $7.9 million carryover and noted that state law requires districts to keep cash on hand equal to two payrolls and to file a financial position report three times a year. After rechecking the report, staff found it had undercounted payrolls and omitted certain stipend and summer-school charges.

District staff described the errors in three parts: an incorrect payroll-count assumption, extra stipend/one-time payments that were not included, and about $1.1 million in summer-school…