Gettysburg Area SD finance staff present preliminary 2025–26 budget showing $2.5 million shortfall

Belinda, a district finance staff member, told the Gettysburg Area School District Board of Directors that the districtis presenting a preliminary 202526 26 budget with no proposed tax increase and an unreconciled difference of about $4.5 million. After planned one-time uses of reserve funds totaling about $1.9 million, the district still faces a $2.5 million gap that must be closed before final adoption.

Why it matters: The presentation outlined revenue and expenditure changes that many districts are seeing: federal pandemic-era funds have largely expired, special-education and labor costs are rising, and local revenue remains the districtprimary funding source. The board will review updates over the spring and must adopt a final budget for filing with the Pennsylvania Department of Education by June 30.

Belinda said the districtremains locally reliant for revenue, with about 68% of funding projected to come from local sources and roughly 31% from state sources. She said total revenues for the upcoming budget are presented at roughly $75.5 million versus $80.0 million in projected expenditures.

Belinda described the single largest year-over-year revenue change as the decline in federal ESSER funds: the district received about $5.5 million in 202324 under ESSER but expects roughly $928,000 tied to federal programs for 202526 26, mainly Title I and other formula programs. She said the governor's proposed numbers were not included beyond a conservative starting point.

On expenditures, Belinda identified roughly $47.5 million for salaries and benefits, a 3.8% increase driven largely by negotiated contract increases; $6 million for contracted special-education services (an increase tied to LIU services); $11.9 million in other purchased services (including charter tuition and transportation); and higher projected amounts for supplies, utilities and facility support. She said charter tuition costs are projected to exceed $5 million in 202526 26.

Belinda said the district proposes using a combination of a designated PSERS/PCERS commitment ($345,902) and $1.5 million in unassigned fund balance to reduce the deficit by $1.9 million, leaving the remaining $2.5 million to be addressed through either revenue increases, expenditure reductions, or a combination. She noted the boardpolicy requires a minimum unassigned fund balance equal to 6% (about $4.8 million), which constrains how much reserve the district can prudently draw down.

Board members asked several clarifying questions during and after Belindapresentation. A board member asked whether federal revenue figures are reliable; Belinda said federal allocations (Title I, II, III, IV) are often not final until later in the budget cycle and her presentation used prior-year receipts as a starting point. Another board member asked for a future breakdown of charter expenses (cyber versus brick-and-mortar); Belinda agreed to provide that information.

Belinda described the districtplan and timeline: staff will return to the board April 7 with additional budget discussion, seek approval of a proposed final budget for advertisement in May, and aim for final adoption by June 16 to meet the PDE filing deadline of June 30.

The presentation and the districtwebsite posting of the audit were noted; Belinda said the 202324 audit had no significant findings and is available online.

What remains unresolved: the board has not identified which specific revenue increases or expenditure reductions will close the remaining $2.5 million gap. Belinda said options include a possible tax increase up to the districtadjusted index (4.8%) or targeted cuts, and staff will return with updated assessment data in May.

Ending: The board scheduled follow-up budget work for April and May and expects to bring a proposed final budget for advertisement before June adoption.