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Dover Area SD board weighs using fund balance versus modest tax increase to close $2.1M deficit
Summary
CFOO Miranda Weaver presented updated budget numbers showing a projected deficit near $2.1 million; the board debated three scenarios (no tax increase using fund balance, a 2% tax increase, and intermediate options) and directed staff to return with scenario spreadsheets and options for cuts and fund-balance usage.
Miranda Weaver, the district's chief financial and operating officer, told the Dover Area School District Board of Directors that updated revenue and retirement projections have reduced the projected 2025 deficit but left the district with roughly a $2.1 million shortfall.
'To fund the $2.1 million deficit, we either have to raise taxes, use fund balance or both,' Weaver said, adding that there is also a possibility the district could receive roughly $1.1 million more in state aid depending on how the state budget settles.
Board members debated how much to rely on the district's fund balance versus a tax increase and whether to remove some of the smaller proposed cuts that administrators had identified. Director Emmett and Director Hamick repeatedly said they preferred using fund balance to avoid raising taxes; Director Wolverton, Director Overton and others urged a mix of limited tax increase and fund-balance use. Several directors asked staff for multiple options to bring back to the full board.
'I would like to see a 1.5, 2 and 2.5 (percent) option,' Director Wolverton said, asking the CFOO to show how much of the fund balance each rate would require. Director Emmett said she did not want any additional cuts to instructional items and preferred relying on fund balance.
Board discussion covered which discrete items to preserve from a list of proposed cuts. Directors identified $83,905 of relatively small recurring items — including marching-band parade, graduation sound equipment, scholastic materials and certain field trips and competitions — that several directors said they did not want to cut because of the student impact. Weaver and others noted retirements and insurance savings already built into the budget reduce the gap.
On next steps, the board directed Weaver to prepare two to three preliminary budget scenarios for the next meeting: (1) no tax increase with fund-balance use to cover the deficit, (2) a tax increase (board members suggested 1.5 to 2.5 percent as options; the board settled on 2 percent as one scenario) plus reduced fund-balance use, and (3) a second variation showing the chosen tax rate with and without the proposed smaller cuts. Trustees agreed staff would solicit a straw-poll of board priorities via email before finalizing scenarios for the May preliminary budget presentation.
Public comment during the meeting reiterated concerns about fiscal responsibility and urged the board to prioritize students and staff when weighing cuts.
No formal vote was taken on any tax rate or cuts during the meeting; board members agreed staff should return with scenario spreadsheets and supporting numbers to inform a preliminary budget vote in May.
