Penncrest previews $60.4 million preliminary budget; cyber charter costs, health claims and declining enrollment cited

Kristen Slauscher, the district's business manager, presented the Penncrest School District’s proposed 2025–26 budget on April 14, reporting projected expenditures of $60,411,098 and a preliminary budget gap of $1,366,004.16.

Slauscher said the figures are preliminary and depend on final state and federal numbers. “This is where our starting point is,” she said during the presentation, adding district staff are still awaiting several state inputs that could reduce the projected shortfall.

Why it matters: the board will vote on a preliminary budget May 12 and must adopt a final budget by June 9. The presentation identified several drivers of the deficit that board members said they will press to address: falling enrollment, large out‑of‑district cyber charter payments, sharply rising self‑insured health claims and prescription costs, and the cost of transporting students across a large, multi‑county district.

Key budget figures and drivers

- Expenditures and deficit: Slauscher presented projected expenditures of $60,411,098 and a preliminary deficit of $1,366,004.16. She described the number as a starting point that the district hopes to reduce as state figures are finalized.

- Enrollment trends: Enrollment has declined about 23 percent from 2013–14 to 2023–24, Slauscher said. Only Maplewood Elementary and Maplewood High School have increased enrollment in the last decade.

- Outside cyber charter costs: The district has 92 students attending outside cyber programs this year (66 regular, 26 special education). Penncrest paid approximately $1,200,000 through March for students who live in the district but attend outside cyber schools; the district spent nearly $2,000,000 on those placements last year, Slauscher said. Per‑student payments to outside cyber providers were cited at about $16,082.51 for regular education students and $26,888.61 for special education students.

- State cyber‑charter reform: The state has proposed limiting outside cyber payments to $8,000 per student per year. Slauscher and board members said that level would save the district roughly $800,000 (estimate provided in the presentation). Board members urged advocacy with state legislators to press the proposal.

- Health care and high‑cost claims: Penncrest participates in a self‑insured trust. Slauscher said prescription costs totaled about $1,500,000 through January, with GLP‑1 drugs (a new class of weight‑loss/diabetes medications) accounting for about $542,000 and representing 36% of prescription costs. The district reported 946 total plan members (employees and dependents) and 28 claims exceeding $25,000 this year; six claims exceeded $110,000 and two exceeded the stop‑loss threshold of $300,000.

- Staffing and payroll: The draft budget reflects 346 staff positions for 2025–26, down from 362 in last year’s budget. Slauscher said staffing reductions over time have mirrored enrollment declines; the district showed a roughly 14% reduction in staff since 2017–18.

- Transportation and geography: Penncrest covers an expansive multi‑county territory. The district’s transportation service area was cited as 409 square miles; average route times and long distances limit flexibility in altering routes. The presentation showed estimated costs for nonpublic transportation of $509,002.72 and IEP‑required transport (vans/alternate routes) near $419,390.

- Fund balance and debt: Slauscher reported an available fund balance of roughly $14 million and noted the board maintains reserves to cover debt service and to protect cash flow if state payments are delayed. The district’s debt service and capital transfer practices were reviewed as part of the presentation.

Quotes and board reaction

Slauscher emphasized the preliminary nature of the figures: “We’re waiting for a few numbers to come back, and we’re cautiously optimistic that we’re going to get some better news to bring that number down.” She also addressed staffing concerns directly: “Right now, there’s no staff cuts at all,” she said, clarifying the presented deficit did not yet reflect any personnel decisions.

Board members and district staff discussed advocacy to the state on cyber charter funding and urged community members to contact state legislators. Several board members described the current cyber charter payments and fund balances at some cyber providers as a major local concern.

Next steps and timeline

Slauscher said the district will continue to refine the proposal as state and federal numbers are finalized. The finance committee will meet April 28 at Sagerstown High School for a community engagement meeting; the board plans a preliminary budget vote May 12 and a final vote June 9.

The business manager asked the public to submit questions and said staff are reviewing department line items daily to seek additional savings without affecting student programs.

Ending

Slauscher told the board the district is making progress compared with last year’s larger gap and pledged continued work on reductions and clarifications before the board’s May 12 preliminary budget vote.