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Abington Heights projects FY24–25 surplus but flags health-insurance and charter tuition as major risks
Summary
Business officials reported a likely $800,000–$1,000,000 surplus for FY24–25 but warned the district's self-insured health plan balance is falling rapidly and cyber-charter tuition, facility bids and debt service could widen next-year deficits.
Abington Heights School District finance staff told the school board the district expects a surplus of roughly $800,000 to $1 million for the current fiscal year but described several high-risk cost drivers that could produce a large deficit in 2025–26.
Jim (business office staff) reviewed revenue and expense variances for FY24–25: year-to-date real-estate collections were about $250,000 above budget, earned-income tax receipts were up roughly 3% year-over-year, and real-estate transfer taxes were about $150,000 above projections. Investment earnings were strong enough that the district expects to “crest a million dollars” in investment income again this fiscal year, the presentation showed. On the expense side, one-time maintenance and technology purchases (including a high-school networking E-rate project of about $217,000 and a gym-floor repair purchase order partially covered by insurance) and special-education costs were major drivers of variances.
The presentation emphasized severe pressure on the district's self-insured health fund. Jim and Dr. Schaeffer said the fund has fallen from roughly $6.7–$7.2 million down to less than half that balance over several years and that prescription-drug costs are a principal factor. The business office reported the district currently disburses about $600,000 a month for health claims; stop-loss insurance premiums add roughly $400,000 a year. Officials said a prolonged high-claim month could force the district to pay claims from the general fund.
Cyber-charter tuition was the other major structural concern. The board heard that Abington's payments to cyber-charter operators (Commonwealth Charter Academy identified as the district's largest cyber provider) drive tuition-rate calculations on the PDE-363 form and that current statewide policy allows substantial annual increases in the amounts districts pay. The business office estimated codified reform or a flat-fee change could save the district roughly $800,000 a year.
Facilities also featured in the briefing. Staff said bids for a planned middle-school project will be opened next Wednesday at 11 a.m.; the timing and size of borrowing tied to that project could add $0 to $3 million in debt service depending on the chosen financing plan. The county reassessment cycle is also underway: Lackawanna County will receive new assessment data June 1, with preliminary assessed values mailed to taxpayers in July and final assessments to follow after a three-month appeals period.
Board members asked for additional detail on the 2025–26 preliminary budget and asked staff to bring a draft budget after the bid opening and more definitive state funding signals. Jim and Dr. Schaeffer said they will return with a proposed 2025–26 budget once the district has bid results and additional state budget clarity.
