Derry Area SD presents $43.9 million proposed budget for 2025–26, cites rising benefits, cyber‑charter and special‑education costs

Derry Area School District business staff on Thursday presented a proposed $43.9 million budget for fiscal 2025–26 that would hold the district’s current millage steady while using roughly $3.2 million of fund balance to balance next year’s spending.

The presentation, given by Mr. Chapel, outlined projected expenses of about $43.87 million and projected revenues just under $40.7 million, leaving a budget gap that the district would cover with fund balance and a planned $1.5 million transfer to the capital projects fund. “This really is a process that essentially extends for 8, 9 months at a time,” Chapel said as he walked trustees through line‑item changes and a multi‑year view of costs.

Why it matters: the draft shows continuing upward pressure on routine operating costs from salaries and benefits, higher retirement rates from PSERS, steady cyber‑charter tuition and a rising special‑education population — factors that the administration said will constrain the district’s financial flexibility if state or federal support falls short.

Key figures and drivers

- Proposed total expenditures: $43,871,002 (approx.). - Proposed total revenues: about $40,700,000. - Planned use of fund balance to balance the budget: about $3,200,000. - Beginning fund balance (estimated): $10,400,000; projected…