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Preliminary 2023–24 audit shows small deficit, special‑education costs drive pressure on Act 1 decision
Summary
Preliminary audit shows a FY23–24 net deficit near $817,000 but the district's unassigned fund balance remains above 5%; auditors will finalize the report in January. Finance staff recommended continuing the budget process and discussed the option of passing an Act 1 resolution (4% index) with a potential small special‑education exception.
Finance staff presented preliminary audited financial results for fiscal year 2023–24 and reviewed options related to Act 1 budgeting.
The audit presentation reported revenues of roughly $102 million and expenditures of about $103 million, leaving a net change in fund balance of about a $817,000 deficit — close to the budgeted figure. Staff said the district’s unassigned fund balance remains above 5% and that interest income (+$1.3 million) and other revenue items helped offset pressures.
Finance highlighted special‑education expenses as a primary driver of the variance: out‑placement tuition, contracted paraprofessional/PCAs and settlement/legal expenses increased special‑education costs (actual ~ $6.8M vs. budget ~$5.3M). Final audit numbers and any Act 1 exception amount will be available when the audit is finalized in January; staff estimated a potential special‑education exception in the $600k–$800k range that would raise the allowable tax increase by roughly 1.1–1.2 percentage points if used.
Staff reviewed the budget calendar and explained that an Act 1 resolution (which would commit the district to a tax increase at or below the Act 1 index of 4%) can be discussed in November and approved in January. Trustees asked for continued analysis and comparisons of options; staff committed to return with detailed figures.
