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Finance committee hears budget outlook: Act 1 index, salaries and capital needs drive revenue discussion
Summary
Finance staff presented a preliminary budget outlook showing a 3.5% Act 1 index scenario that would add roughly $8.3 million in revenue; board members discussed salary increases, medical-cost pressures, the 10-year maintenance plan and capital demands tied to a high-school feasibility project.
Miss Houser, presenting the finance office's early budget work, walked the committee through revenue and expense scenarios for the 2026–27 budget and the impact of taking the Act 1 index.
"If we went to the Act 1 index, that would add about 8,300,000.0 to the budget," Miss Houser said, explaining that roughly $213,000 of that pickup comes from increased property assessments while the remainder relies on millage increases. She emphasized the analysis is a draft and that Frontline and eFinance Plus reporting are being refined.
Committee members raised concerns about constrained state and federal funding for key programs (Titles I–IV) and the compound effect of declining index growth on long-term capital needs. One board member noted the district's 10-year maintenance plan totals roughly $185 million and argued that infrastructure needs make taking full Act 1 defensible.
Finance staff showed early modeling indicating the district's top three revenue drivers—real estate taxes, state subsidies and federal grants—would not fully offset projected contractually obligated salary increases and early medical-benefit estimates. Miss Houser summarized: projected revenue increases (~$8 million) versus projected salary increases (~$7 million) leave limited discretionary funds for other costs.
Discussion also touched on the high-school feasibility study and a previously modeled $260 million high-school project; board members urged including full Act 1 as an option in upcoming budget decisions so future boards can evaluate long-term borrowing implications. Miss Houser offered to provide additional educational sessions for new board members on budget structure and modeling.
No formal decision on millage or the Act 1 index was taken; staff asked for guidance on whether the board wants Act 1 modeled as an option in the coming budget cycle. The committee scheduled additional informational work-session time and confirmed the action meeting timeline for formal approvals later in the month.
