Abington Heights budget update: state block grant eases shortfall, but health insurance, cyber charter costs and tax‑assessment appeals remain risks

Abington Heights School District officials told the school board on Nov. 19 that a larger‑than‑expected state block grant has substantially narrowed a previously projected budget gap, but long‑term pressures remain from rising health‑insurance costs, cyber‑charter tuition and a wave of property‑assessment appeals.

The most immediate budget news came from the district's financial presentation: the district budgeted $857,000 for the state 'ready‑to‑learn' block grant and now expects a little more than $2,000,000, a positive swing of about $1.14 million, presenter Jim said. "We had budgeted for $857,000, and we will be receiving a little over 2,000,000 there," he told the board.

Why it matters: the board had carried a $1.6 million budgetary gap entering the current fiscal cycle. The block‑grant increase significantly reduces that shortfall, but officials cautioned it is not a permanent fix and must be treated carefully when forecasting future budgets.

Officials also highlighted two ongoing cost drivers. The district's self‑funded health‑insurance program lost roughly $1.7 million in the prior year, and the budget includes an additional $1.7 million set aside for 2025–26 to stabilize reserves. "Our health insurance fund lost $1,700,000," Jim said, adding that monthly claims have been rising and the district is pursuing plan changes and consultant support to contain costs.

Board members and administrators also described recent changes in state law that affect how charter‑school tuition is calculated. The new formula allows deductions — including 100% of regular cyber‑charter tuition in some cases and partial deductions for student‑activities and plant maintenance — that the presenters said will lower Abington Heights' charter tuition obligation. Jim estimated a potential savings of about $217,000 if October enrollment remains steady. "If our October enrollment stays flat for the whole year, we will save somewhere in the neighborhood of $217,000," he said.

But administrators warned those changes do not eliminate the wider problem of funds flowing to cyber charters: the school attorney and superintendent described the calculation as effectively "reverse engineered" to meet political budget targets and said continued advocacy will be necessary to address fairness concerns.

Finally, the board heard a warning about property‑assessment appeals being filed with the county. Jim said the district is tracking more than 30 appeals and said delayed appeal resolutions could reduce recurring tax revenue. He told the board about a neighboring district that lost an estimated $5 million in recurring revenue over three years because appeals were resolved after certification. Superintendent Dr. Schaeffer added that several large non‑resident taxpayers are among the appeals and said those losses could translate into lost positions: "You're gonna cost us two teachers," he said, describing a recent conversation with a company executive.

What’s next: administrators said they will present year‑to‑date financials in upcoming board packets, complete the audit and begin 2026–27 budget development and a five‑ and ten‑year forecast to inform capital and operational planning.

Provenance: The budget overview and quotes are from the district budget presentation led by Jim and remarks by Superintendent Dr. Schaeffer during the Nov. 19 meeting (topic introduced at SEG 664 and discussed through SEG 776; charter‑tuition discussion appears from SEG 873 to SEG 983; reassessment risk discussion appears SEG 1319–SEG 1409).