Mifflin County School District outlines 2025-26 budget path amid state funding uncertainty

Mifflin County School District staff presented an initial review of the 2025-26 budget at a regular school board meeting, laying out statutory deadlines and revenue scenarios and warning that state and federal funding uncertainty will shape final decisions.

Business office staff member Miss Bucknap, who led the presentation, said the district must follow Pennsylvania Department of Education (PDE) timelines under Act 1 of 2006 and adopt a proposed budget by May 31, with the board’s target date for a proposed budget set for the May 22 meeting and a final budget required by the June 30 statutory deadline. "The statewide index this year was 4%." she noted, adding that Mifflin County qualifies for an adjusted index of 5.5%.

The presentation framed the board’s choices: balance revenues and expenditures while observing the state-mandated requirement for a balanced budget and limits on unreserved fund balance. Bucknap emphasized that the general fund is the district’s primary operating fund and that the district's accounting follows PDE’s chart of accounts.

Why it matters: The district gets more than half of operating revenue from the state, the presenter said, creating risk because state and federal appropriations are not finalized when the board must set its budget. Mifflin received a one-time adequacy supplement for the current year; Bucknap said the district will include $2.5 million of that funding in the 2025-26 figures but cautioned that such supplements are not guaranteed beyond 2025-26. "Definitely for 2526, the 2 and a half million is included, and, you know, we can count on that funding for 2526," she said.

Key fiscal figures and constraints - Fund balance: The district reported a total fund balance of about $27,000,000 as of June 30, 2024, with roughly $8,000,000 unassigned; PDE allows an 8% unreserved fund balance for districts of Mifflin’s size. Bucknap described fund balance as intended for one-time uses and conservative budget balancing rather than an operating savings account. - Revenue mix: The operating revenue breakdown for the current year was roughly 54% state, 42% local and 4% federal. Locally, 65% of local revenue comes from real estate taxes and about 22% from earned income taxes. - Millage and tax scenarios: The district’s current millage rate was presented as 34.5215 mills. Bucknap ran scenarios showing that raising taxes to the full 5.5% Act 1 adjusted index would generate about $1.55 million (averaging ~$69.59 per taxable parcel across 22,290 parcels); a 1-mill increase would yield about $817,000 (about $37 per average parcel). She noted the district has not had a reassessment since 1999 and explained how assessed values are calculated at 50% of market.

State and federal funding issues - Act 1 and timelines: The budget timetable is governed by PDE and Act 1 of 2006; the district previously adopted the required resolution not to exceed the index on Dec. 19 (as part of Act 1 compliance), Bucknap said. - Adequacy supplement and governor’s proposals: Mifflin was allocated a $2.5 million adequacy/tax-equity supplement in the current budget cycle after statewide litigation over basic education funding. Bucknap summarized elements of the governor’s proposed budget (noting a proposed $51.4 billion general fund and line items such as increased basic education funding, special-education support, and a large adequacy/tax-equity pool). She cautioned that proposed state revenues and policy choices are not final and could change during the state budget process. - Charter school tuition: The presentation highlighted continuing growth in charter tuition costs, which the presenter called a structural problem. Recent per-student numbers shown were about $11,002.39 for regular-education charter tuition and roughly $17,470 for special-education tuition; total charter-school expenditures exceeded $4 million in 2024 and are projected higher as district budgets grow and enrollment declines. - Cyber charter reform: The governor’s proposal to set a statewide cyber-charter tuition rate at $8,000 was noted as potentially helpful; Bucknap said the district “is in desperate need of cyber charter reform.” - Federal COVID-era funds: Bucknap reported that the district completed spending and closed its COVID-era grants before the U.S. Department of Education’s March 28 decision to eliminate late-liquidation allowances; she said that step protected Mifflin from potential clawbacks that affected some neighboring districts.

Special education and staffing costs Bucknap reviewed the district’s cost-per-student figures for 2024–25: elementary $9,891 and secondary $10,003.26; special-education per-student expenditures were shown at approximately $17,470. She highlighted an ongoing gap between special-education expenses and the state’s special-education subsidy and showed historic trends indicating the gap has increased as needs rose while enrollment declined.

Process and next steps Board members were reminded of the board’s role in setting priorities through the budget. Bucknap outlined staff assumptions used in early drafts—conservative budgeting based on current-year revenues—and said staff will return with expenditure details and follow-up items in coming weeks. Superintendent Varner requested an executive session at the meeting’s end to discuss exceptional personnel and student-liaison matters; the transcript shows the request but no formal board vote on the session was recorded.

What the board asked and what remains open Board members asked for cost-to-educate figures and clarification of particular revenue lines; Bucknap provided the per-student figures during the presentation. Outstanding uncertainties the presenter flagged include whether the adequacy funding will be continued beyond 2025-26, the final state budget decisions that typically continue into June, and the end of elevated federal funding levels that had subsidized positions and programs in recent years.

Ending The board received the presentation for planning and asked staff to refine expenditure details and return with a proposed 2025-26 budget for board consideration before the statutory deadlines.