York Suburban CFO outlines draft 2025–26 budget, proposes 3.25% tax increase and $500,000 reserve transfer

The York Suburban School District’s chief financial officer presented the district’s draft 2025–26 general fund budget to the board, projecting higher revenues than the current budget and proposing a 3.25% millage increase to help close a projected shortfall.

Chief Financial and Operations Officer Kennedy told the board that revenues for the current fiscal year are projected to come in about $1.7 million higher than the adopted budget and that total revenues included a $2.8 million uptick in state subsidies in the forecast, much of it tied to timing differences and additional basic education and charter reimbursements. Kennedy said local revenue increases are driven primarily by real estate taxes and higher interest income; she budgeted $1 million in interest revenue for next year and proposed transferring any interest receipts above $500,000 into a capital reserve.

On expenditures, Kennedy described wage and benefit trends, noting wages are projected to come in under budget for 2024–25 while purchased services and supplies are trending higher. The 2025–26 draft assumes a 1.9% increase in wages overall and a 4.9% increase in benefits, includes roughly $233,000 for athletic and facilities equipment, and budgets a $500,000 reserve to protect against settlement expenditures offset by $500,000 of assigned fund balance.

Key numbers and calendar Kennedy gave to the board: • Proposed millage increase: 3.25% (broken down as 1.92% for debt service, 0.3% for assessment adjustments, and 1.3% for increased costs). • Draft revenue increase vs. prior budget: about $3 million (4.2%). • Draft total expenditures increase vs. prior budget: about $3.4 million (4.6%). • Projected year‑end fund balance for 2025–26: currently a small deficit just under $1 million in the draft; administration expects to refine numbers before final adoption.

Kennedy walked the board through factors behind the $1.7 million improvement from the February projection: removal of duplications in expense lines, reclassification of a food service position from the general fund to food service, timing of payrolls, and receipt of delayed E‑Rate funds. She also explained state funding items that affected the forecast, including additional basic education subsidies and a “ready‑to‑learn/adequacy” payment that York Suburban received in the prior year and that remains uncertain for 2025–26.

Board process and next steps Kennedy said the board will be asked to approve the proposed budget for display and advertising at the April 28 meeting. The district expects Homestead/Farmstead information on May 1, will present a final budget May 12 and is scheduled to adopt the final budget May 22.

Board members asked for additional detail during the presentation. Mr. Sanders and other members pressed for more time and more subcommittee review; Mrs. Turner asked for clearer explanation of the earned income tax (EIT) mechanics and for details about fund balance categories. Kennedy said next steps include updated numeric adjustments and distribution of corrected copies to board members and the public.

Why it matters: the proposed tax increase and the assumptions near‑term affect the district’s property tax notices and the ability to fund staff, special education and cyber charter costs that continue to pressure budgets statewide. Kennedy highlighted cyber charter, special education and inadequate state funding as the top cost pressures affecting the district.

No final budget action was taken at the meeting; the board set a schedule to review and act on the proposed budget in April and May.