Conewago Valley SD presents budget scenarios that would fund ACTI and renovations with modest millage increase
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Summary
District finance staff outlined 2025–26 expense drivers, proposed spreading ACTI and renovation costs over additional years to reduce immediate tax impact, and recommended using a portion of reserves while planning public presentation and voting timeline in April–May.
Conewago Valley School District finance staff presented a detailed review of proposed 2025–26 expenses on Feb. 25 and recommended a limited tax increase focused on the planned ACTI (area career technical initiative) expansion and building renovations.
The presentation showed the district’s expense increases are driven mainly by wage and benefit inflation, bond debt service, new positions, cyber school costs, transportation contract changes and projected renovation and ACTI shares. Finance staff estimated ACTI’s total annual cost to the district at about $1.8 million, of which the district currently pays roughly $250,000 in tuition; the presentation listed a remaining annual ACTI-related cost of about $1.1–1.5 million depending on timing and assumptions. For construction and renovation debt service, staff reported a remaining need after prior set‑asides and proposed extending the repayment window to lower yearly impact.
To reduce the immediate tax impact, the presenter modeled spreading renovation bond costs over four years (instead of three) and extending ACTI funding build‑up to five years (with a board member later suggesting six years as an option). The finance summary translated those scenarios into millage and household impacts: the presenter said the construction renovation scenario would add about 0.3205 mills, ACTI about 0.1139 mills under the five‑year plan, and a combined effective increase “about 0.43–0.45” mills in the baseline proposal. The packet included a clear example that a 0.45‑mill change would add roughly $43 per year on a $100,000 home under the district’s methodology.
Staff recommended using fund balance to smooth the budget while awaiting final state funding levels. The presentation noted the district placed $872,000 into fund balance at the end of 2023–24 and proposed drawing those funds if the governor’s and General Assembly’s allocations do not materialize as currently forecast. Finance staff said if the governor’s proposed additional Ready to Learn funds (cited in the presentation at roughly $1.6 million) are provided, the district would reduce reliance on reserves.
Board members asked about timing, and staff proposed the following schedule: a public presentation of the final proposed budget on April 7, a board vote on the “proposed final” budget on April 14 to open the 20‑day public display, and a final vote in May (staff suggested May 10) so administrators and principals have time to order supplies before the next school year. Staff said additional committee meetings (March 3, March 10, and March 17 were referenced) are scheduled for continued review.
The presentation included a short list of “hard‑to‑control” expense drivers—cyber school tuition, utilities, transportation and bond payments—and recommended the board consider modest millage targeted at ACTI and renovations rather than a broad operating increase. Several board members advocated stretching repayment years further if ACTI’s schedule remains uncertain to reduce immediate taxpayer burden.
No formal budget adoption vote occurred at the Feb. 25 meeting; staff asked the board to review the packet and return with questions at upcoming meetings.
Ending: The board scheduled follow‑up meetings in March and maintained the April–May public presentation and voting timeline for the proposed and final budgets.
