Mount Pleasant Area SD cites $5.6M state funding shortfall as budget stalls; board sets Act 1 cap at 4.6%

JR Deritsa, the Mount Pleasant Area School District business manager, told the board the state has not yet passed the 2025-26 budget and that the district has received only its property tax relief payment of $1,400,000 so far this fiscal year, compared with $7,100,000 at the same point last year.

"So far to date, we've only gotten our property tax relief payment of $1,400,000, and that's it for state funds," Deritsa said, adding the gap is about $5,600,000 compared with last year. He said the district's fund balance allows operations to continue for several months but that officials are preparing contingency borrowing plans if the state delay persists.

At the meeting the board voted to adopt a budget resolution (agenda item 10.1) that establishes a "do not exceed" Act 1 index cap of 4.6% for the 2026-27 budget year. The board conducted a roll-call vote on the Act 1 item; the clerk recorded seven yes votes and zero no votes, and the motion passed.

Board members emphasized the Act 1 action is a procedural cap rather than a decision to raise taxes. "This is simply saying that as a district, you cannot go above that," a board member said during the discussion, clarifying the resolution limits the maximum increase the district could adopt in the coming budget process.

Separately, the board adopted a Pennsylvania School Boards Association (PSBA) resolution asking state lawmakers to pass a complete and responsible state budget immediately, signaling local frustration with the delay.

What happens next: district officials said they will monitor state action and, if the state budget is not resolved by December, they will move forward with planned borrowing options only if necessary. The district's reorganization meeting is scheduled for Dec. 3 at 7:00 p.m., at which any further budget-related actions would be considered as part of the regular timeline.