Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Budget topic
No spam. Unsubscribe anytime.
Proposed 2025‑26 budget shows $2.57 million shortfall; 4% Act 1 index would cut gap to about $1.2 million
Summary
District finance staff presented the proposed final budget for 2025‑26. Without a tax increase the budget shows a $2,573,251 shortfall; applying the 4% Act 1 index would generate about $1.37 million and reduce the operating shortfall to roughly $1.2 million to be covered with fund balance.
District finance staff presented the proposed final 2025‑26 budget at the workshop and outlined revenue and expenditure changes since the April draft, the potential effect of an Act 1 tax index increase and the short‑term use of fund balance to close the gap.
Finance staff said proposed expenditures are $55,353,999 and revenues are $52,780,748, creating a proposed shortfall of $2,573,251 before any tax increase. Using the 4% Act 1 index would generate approximately $1,374,028 and reduce the net operating shortfall to about $1,199,223, which staff said the district plans to cover with fund balance adjustments.
Staff detailed revenue movements since April: slight growth in state basic education and special education aid line items, modest increases in investment earnings and payment‑in‑lieu amounts, and continued federal grant allocations. The presenter also noted an increase in the district’s homestead/farmstead allocation: staff said the 2025‑26 certification will bring about $1,168,392 to the district (compared with $1,020,569 this year).
On expenditures, staff attributed a roughly $900,000 increase in salary projections and a similar increase for benefits driven by health‑insurance cost increases (presenter cited a 10.2% health‑insurance increase and a 16% dental increase). Fuel costs were discussed: the presenter said the district locked fuel bids and that heating oil next year would be about 2.0714 (per gallon) versus the current 2.607. The presenter noted insurance premiums increased by about 5% and that those increases partially offset fuel savings.
Staff proposed closing the remaining gap with a mix of restricted, committed, assigned and unassigned fund balance. The board asked staff to finalize figures and said the administration needs direction next week if members want the proposed final budget to include a millage increase; staff said final budget adoption remains on the June timeline.
No budget adoption occurred at the workshop; staff will return with a proposed final budget for board action at the next meeting.
