Baldwin-Whitehall warns of multimillion-dollar shortfall as tax collections lag and federal aid is uncertain

The Baldwin-Whitehall School District’s finance staff told the school board on Tuesday that the district faces a potential multimillion-dollar shortfall for the 2025–26 fiscal year after current-year tax collections fell below expectations and federal grant funding remained uncertain.

During a budget presentation, the district business manager said, “we're probably gonna have about a $4,000,000 deficit,” and outlined how lower-than-expected current tax collections — particularly in Baldwin and Whitehall boroughs — have reduced revenue this year and could strain next year’s budget.

The discussion matters because the district depends on local property and earned-income taxes for more than half its revenue. With federal Title and IDEA dollars at risk and state increases only modest in department proposals, administrators said balancing the budget without additional local revenue or program cuts would be difficult.

Business manager (identified in the meeting as the presenter of the revenue slides) told the board the district’s projected revenue mix for 2025–26 is roughly 58% local, 39% state and about 3% federal. He said the district typically budgets delinquent real-estate tax receipts at about $1 million; this year delinquent collections rose to roughly $2.7 million because of a few large collections, and he increased next year’s delinquent-tax budget to about $1.8 million to be conservative.

The presentation included several figures the board discussed: the district’s current millage rate is 25 mills, the Act 1 index for 2025–26 would allow up to a 1.35‑mill increase (a potential ceiling of 26.35 mills), and recent reductions in assessed values across the three municipalities would depress revenue by about $90,000 at the current millage if those appeals hold. The business manager said the governor’s proposed budget raises the “ready to learn” line items significantly, but overall state growth is modest and not sufficient to cover the shortfall if federal funds do not materialize.

The business manager ran a scenario for board members: if federal funding the district currently expects does not continue, and the district instead maxed out the Act 1 index, the additional millage would bring in about $2.6 million — still leaving little room for increased expenses. “That would mean in 2526, our additional expenses to remain at a balanced budget could only be 400,000,” he said, noting that figure would have to cover salary increases, new positions and any program expansions.

Board members pressed for context. Board member Mister Giglione asked about fund balance and was told by the presenter, “Our fund balance about 26,000,000 right now.” When asked how much of that is unassigned, the presenter said the unassigned portion is “probably around 5” (million), reflecting the district’s practice of holding a multi‑million-dollar reserve and a required minimum. Several board members cautioned that drawing on reserves repeatedly would be unsustainable.

Administrators pointed to several drivers of uncertainty beyond current collections: continued declines in assessed values after tax appeals, potential changes to how federal funds are allocated to the state, and reductions in state reimbursement for bond payments as projects pay down. The business manager noted that assessed-value reductions at several large commercial and residential properties had lowered taxable base across the district over the last two years.

Operations and transportation items appeared in the finance presentation. Facilities staff and the presenter told the board Duquesne Light will install service and initial charger infrastructure at the district bus garage to support two electric buses initially, with room to expand to four charging stations as the district acquires more electric vehicles. The presenter also said the district continues to face driver shortages and has discussed vehicle and staffing options with contractor First Student, which holds a five‑year contract with the district; First Student may lease nearby yard space to house additional vehicles.

Administrators also briefed the board on contingency planning if federal program funds change. The presenter said several staff positions — including about 11 positions currently funded wholly or partially by federal Title programs — could be affected if the funds were reduced or eliminated, and the district would need to consider whether to locally fund those positions or reduce programs.

Votes at a glance

The board took several routine votes during the meeting; the presenter counted and the board clerk recorded results on consent items and a student travel request. Recorded outcomes were: - Consent business items (agenda items 2.2–2.7): motion passed, yes 8, no 0, absent 1. - Superintendent personnel consent items (agenda items 4.2–4.15): motion passed, yes 8, no 0, absent 1. - Non‑personnel consent items (agenda items 6.2–6.17): motion passed, yes 8, no 0, absent 1. - Student participation: PMEA All‑State trip (listed in the agenda): motion passed, yes 7, no 0, abstain 1, absent 1.

What happens next

Administrators said a proposed final budget and an expense presentation will appear at the board’s May 7 meeting; the board must advertise a proposed budget in mid‑May and adopt a final budget by the June board meeting. The business manager advised the board he would provide an electronic budget book by April 30 and reevaluate numbers if state, federal or local collections change.

Board members asked staff to continue to monitor delinquent-tax trends, state and federal budget developments and the district’s program mix so the board can weigh any required tradeoffs before the May expense presentation.