Plum Borough SD budget workshop proposes roughly 2.5% tax increase; board weighs federal funding risks and kindergarten timing

Plum Borough School District administrators presented a preliminary 2025–26 budget at a March 11 board workshop that projects about $77.8 million in revenue, $78.2 million in expenditures and an approximate $400,000 shortfall, and recommended an incremental tax approach that would equate to roughly a 2.5% increase in the millage.

District finance staff told the board that most revenues do not automatically track inflation while payroll, benefits and supply costs do. The administration reported a $2.2 million projected increase in personnel costs and a 9% medical‑insurance increase at the consortium level. Debt service is expected to rise by about $412,000 and technology spending by about $476,000. Administrators said these and other pressures create a structural budget gap that the district is addressing with conservative departmental requests, attrition savings and a proposed modest tax increment.

The administration highlighted a $15.9 million fund balance, equal to about 21% of the budget, as a contingency that would allow time for deliberation if state or federal funding changed abruptly. District presenters also quantified federal programs: Title I near $420,000, IDEA pass‑through roughly $650,000 and access reimbursements about $250,000 — a total federal contribution administrators estimated would equal roughly the revenue impact of a 3% millage change if lost. The board and finance staff said they are monitoring state proposals, including an $8,000 statewide cyber‑charter tuition rate and proposed increases for basic and special education funding under the governor’s plan.

Board members asked about the programmatic tradeoffs if the board chose a lower tax increase; administrators said deeper reductions would likely affect services or require use of fund balance. The board discussed the long‑term aim of predictable, small annual increases rather than larger, infrequent jumps; presenters said an incremental approach (half‑index to full‑index options were shown) helps sustain programs and facilities and avoid sharp cuts later.

Full‑day kindergarten was a recurring topic. Administrators said the district is building facility capacity through capital projects and that a full‑day kindergarten program would require both classroom space and operational funding; the administration said full‑day kindergarten “is not going to happen next year” because of capacity limits but that the district continues planning and that April/May budget steps will revisit timing. Board members pressed for clarity about whether to begin setting aside operating funds now versus waiting until the building projects are complete.

The administration said the summer programs handbook was approved to proceed and noted that summer credit recovery remains free to students. Administrators also noted multiple small revenue items that improved the preliminary outlook — including positive earned‑income tax trends and higher interest earnings — while warning that interest income and state allocations could change.

No final millage vote was taken at the workshop; administrators said they would present a proposed budget for adoption in April and a final budget in May, per the district’s timeline.