Bethlehem Area SD projects roughly $10 million shortfall for 2025-26; officials weigh fund balance, taxes and cuts

Bethlehem Area SD officials told a March 24 budget workshop that preliminary numbers for the 2025-26 fiscal year show a budget gap of nearly $10 million and that the district will consider a mix of fund-balance use, local tax increases and expenditure reductions to reach a balanced budget.

“Our goal for this evening is to, boil it down to, the key decisions that are ahead of us,” said Dr. Silva, introducing the district’s early budget review and timeline for the coming months. District presenters said they expect a proposed final budget in May and a board review and vote in June, with more refined estimates to be returned to the finance committee.

The nut of the problem, presenters said, is faster expense growth than revenue growth. The district’s preliminary revenue estimate—using a 4% local tax increase for planning—puts local revenue at about $240,714,000 and total revenue including state and federal sources at roughly $366,000,000. Projected expenses, however, outpace that, producing a near $10 million shortfall unless the district draws more fund balance, raises more local revenue or cuts expenditures.

Federal funding and charter tuition emerged as key pressure points. Presenters said the district receives about $7,500,000 in federal funds—about 2% of the budget—that are highly leveraged for programs such as IDEA, Title I–IV and English learner supports.…