Centennial Board Approves Proposed 2025–26 Budget Ceiling; Board Warns Fund Balance Will Drop

The Centennial School District board approved the proposed final 2025–26 general fund budget Tuesday, authorizing display and advertising under Act 1 of the Pennsylvania school code and setting the district’s ceiling for tax increases. The motion passed 5–4 on a roll-call vote.

The proposed final budget lists total revenues of $150,970,762 and total expenses of $156,790,223, producing a projected deficit of approximately $5,800,000 to be funded from the district’s reserves. The board noted that the Act 1 index used in the proposal is 4 percent for the calculation period; adopting the proposed final budget preserves the district’s option to use the Act 1 increase but does not raise property tax rates beyond the index.

Finance staff presented the budget and the five-year forecast, noting several drivers: continued growth in special-education costs, deferred technology refresh needs (this year’s plan includes a doubled technology refresh), flat state funding and a return to pre-pandemic levels of some federal funding. The district’s projected fund balance at 06/30/2026 was shown at about 4.5 percent of expenses, below the Pennsylvania Department of Education’s recommended 8 percent.

Board members raised questions about the low projected fund balance and the implications for bond ratings. “Would this affect the FISA rating agency?” asked a board member; finance staff said lower fund balances can reduce bond ratings and that refinancing plans were under discussion in committee. Board member Martin said he could not support a budget that would reduce reserves by roughly $6 million.

A separate motion to table the Act 93 administrators compensation plan (item 3.2) passed in a separate roll-call vote; board members asked HR and finance staff to review the compensation plan and provide additional analysis before the board takes action.

Roll-call tally on motion 3.3 (proposed final budget): Martin — no; Hartline — yes; Sadowski — no; Crosson — no; Brancato — yes; Ginhart — yes; Lynch — no; Godickson — yes; McGuire — yes. The chair announced: “Motion passes 5–4.”

Speakers during the budget presentation included Dr. Ben in his superintendent report and Mister Greenwood, who presented the financial forecast and the budget assumptions. The board was advised that final adoption will occur in June 2025 and that some numbers remain subject to change pending the state budget and final revenue figures.

The board also heard that the district expects to refinance several series of bonds in coming months to capture potential interest-rate savings, and that projected savings are contingent on market conditions. Several board members urged continued work to identify expense reductions and to monitor fund-balance levels.