Athens Area SD board approves preliminary 2025–26 budget, raises millage to Act 1 index
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Summary
The board approved a preliminary 2025–26 budget that trims an initial $4.3 million deficit to about $2.75 million through a 3.14‑mill increase to the Act 1 index, five staff positions cut via attrition, and temporary use of assigned fund balances; final adoption is scheduled for June 17.
At its May meeting, the Athens Area School District board voted to approve a preliminary final budget for fiscal 2025–26 that reduces an initial projected deficit of about $4.3 million to an estimated $2.755 million.
Superintendent Dr. Stage, joined by business manager Doreen Secor, told the board the district used roughly $8.4 million in one‑time ESSER relief in recent years and has seen steady increases in salaries, benefits and special‑education costs. "We started with a deficit of approximately $4,300,000," Stage said, noting that salaries and benefits now account for about 72% of expenditures.
To narrow the shortfall, the administration proposed several measures the board approved: raising millage to the Act 1 index (a 5.8% increase equivalent to 3.14 mills), reorganizing central office and reducing five teaching positions through attrition, trimming other purchased services and using assigned fund balances for a temporary offset. Stage said the proposed use of assigned pension and health‑care reserves would reduce the district’s estimated fund balance from about $7.9 million on June 30, 2025, to roughly $4.85 million by June 30, 2026.
Stage flagged rising cyber‑charter tuition bills — from a 2020 budget of about $400,000 to a budgeted $2.02 million for 2024–25, though he said administrators expect to land near $1.6 million — and projected an 8.2% health‑insurance increase and a 2.5% projected salary increase for bargaining groups. The administration also noted it had already reduced other expenditures from $15.59 million to about $15.20 million.
Board members asked for clarifications on the composition of the fund balance, limits under state law and alternative revenue options. Stage said local revenue‑raising power is constrained by Pennsylvania’s Act 1 index process and emphasized the district’s limited ability to generate new revenues beyond the tax index without additional state approval.
The motion to adopt the preliminary budget was moved and seconded; the roll call recorded all members present voting yes. The preliminary budget will be on public display for 30 days and the board is scheduled to consider final adoption at its June 17 meeting.