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Plum Borough board hears budget pitch with 2.25% tax proposal; capital plan prioritizes Oak Block and middle school mechanicals
Summary
Administration proposed a 2.25% tax increase for the 2025–26 fiscal year to avoid roughly $900,000 in program cuts. Board members discussed cost reductions, state homestead funding, cyber charter costs, and capital work focused on Oak Block Elementary and Plum Middle School mechanical needs within a roughly $30 million borrowing framework.
The Plum Borough School District administration presented the proposed final 2025–26 budget to the board and recommended a 2.25% tax increase to close the district's remaining budget gap.
Why it matters: District staff said the alternative to the 2.25% tax increase would be program and personnel cuts totaling about $900,000 (district estimate). The proposal is part of a multi‑year capital program that also allocates debt service for planned renovations, and staff cautioned that further cuts would affect programs and personnel.
Budget rationale and fiscal details Business and finance staff said they reduced a previously larger gap by $1.5 million through a combination of tighter staffing, transportation adjustments, technology E‑rate reimbursements and other departmental reductions; the 2.25% figure reflects additional reductions implemented across departments. The administration told the board that the median assessed homeowner would face an estimated increase of about $5 per month (staff noted the state homestead/farmstead reimbursement figure is pending and could reduce the net increase for eligible homeowners).
Staff also flagged longer‑term funding pressures: the district pays roughly $1.4 million annually for cyber charter tuition, a line item administrators said could fall if state cyber‑charter reforms are enacted. Administrators further noted federal IDEA reimbursement levels remain well below the statutory target and that cumulative underfunding at state and federal levels contributes to local budget pressure.
Capital projects and borrowing Board and staff discussed a capital program that prioritizes work at Oak Block Elementary (O'Block) and mechanical infrastructure at Plum Middle School; the administration said the district planned a $30 million borrowing limit as part of the capital program and that some of the middle school scope is planned in two phases (this summer and a following summer). Administrators also reported roughly $3.8 million allocated to middle school projects this cycle and emphasized grant funding secured for some work.
The administration said the board will receive a detailed HTG presentation on April 16 showing cost estimates for Oak Block and how the overall $30 million plan would be allocated across projects.
Other items discussed - School meals: Board packet includes a universal breakfast/expanded free/reduced lunch conversion contingent on the state budget providing the anticipated reimbursement; staff said they would confirm the state allocation when the Department releases final figures. - JROTC: The board heard about a plan to host a JROTC program with Gateway School District; Gateway already approved participation and would share instructional costs proportionally by enrolled students. - Operations: Staff asked the board to approve gymnasium floor refinishing this summer for safety reasons and recommended using an auction process for end‑of‑life vehicle disposal rather than scrapping buses.
Board direction and vote A board member moved to advance the proposed final budget with a 2.25% tax increase; the motion was put forward for board action. Administration and several board members reiterated the district had already cut costs where possible and that deeper cuts would affect programs and personnel. The board voted to move the proposed final budget forward in the April/May approval timeline so tax bills can be prepared for summer issuance; final adoption will proceed in the legally required timeframe.
The administration emphasized the board’s need to consider steady, incremental tax adjustments as a fiscal strategy to avoid large mid‑cycle spikes and to preserve programmatic investments for students.
