Gettysburg Area SD board hears update showing $1.8 million budget shortfall, schedules tax‑planning next steps

Gettysburg Area School District business staff told the Board of Directors that the working 2025–26 general fund budget has a remaining $1.8 million gap after recent expenditure reductions and planned use of fund balance.

Belinda, speaking during the budget presentation, said, “Our expenditures went down approximately $725,000 which then left our unreconciled gap to be $3,700,000 versus 4.5.” She said the district plans to continue to propose use of a committed fund balance of about $345,902 and to maintain an unassigned fund balance target equal to 6% of expenditures (about $4,700,000 under current assumptions).

The presentation and board discussion made clear the shortfall is driven primarily by personnel costs, health care benefits and the district's contribution to ACTI, the regional career and technical education consortium. Belinda said the budget includes a second year of ACTI funding and that “between personnel health care and ACTI is the main reasons our budget is increasing.”

Board members asked whether state basic education subsidy or federal funds could close the gap. Belinda said she is using current‑year state estimates and “is not banking on additional money from the state.” On federal funds, she said available federal funding for 2025–26 “has not been on the chopping block” and the district is proceeding as if those funds will be available for 2025–26, but noted risks for the 2026–27 school year.

Trustees discussed the timeline for next steps. Belinda said the next budget meeting is scheduled for April 22, at which administrators will present a proposed tax increase option to address the remaining gap if the board does not identify further expenditure reductions. She asked whether the board wanted additional cuts; board members and the presenter noted most controllable non‑personnel expenses have already been trimmed.

Board members and staff highlighted areas already reduced: utility and grounds services, IU services and other contracted services. The presenter said the district’s joint procurement and updated vendor rate information allowed an estimated $725,000 reduction from the prior projection. She also noted special education costs have risen substantially; the district’s data showed roughly a 30% increase in special education costs since 2020.

Officials also identified a small set of discretionary contributions that could be reconsidered as part of the budget process. The presenter listed annual contributions the district currently budgets: $5,000 to the Gettysburg Fire Company, $900 to the Cashtown Fire Company and $25,000 to GAEF (the Gettysburg Area Education Foundation) to support foundation operations. Board members asked for a clearer breakdown of how GAEF funds are spent; a trustee offered to invite a foundation representative to provide details.

Board members pressed on ACTI costs and transparency. Trustees and members of the public described ACTI as a major driver of future district obligations; administrators said participating districts are contributing roughly 1% of their budgets annually toward ACTI to build capacity over several years and that ACTI leaders are negotiating contracts and positions that will affect district contributions. The board said it has one district representative on the ACTI board and will seek updates as negotiations and any expansion plans firm up.

The presentation concluded with the district planning to return to the board with revenue options — including the form and size of any tax increase — at the April 22 meeting so trustees can decide how to close the remaining $1.8 million gap.

Ending: Board materials and the April 22 budget meeting were listed as the next specific steps for public review and decision-making.