District finance chief reviews audit, fund balances and state funding uncertainties ahead of budget workshop
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Summary
BASD finance staff presented FY24–25 audited results showing about $10M more local revenue than budgeted, an improved general fund balance, use of $5.7M to balance the current year, and cautioned that state and federal funding timing and enrollment trends will shape the March budget workshop and final June 8 budget.
The Bethlehem Area School District’s finance presentation on Feb. 9 reviewed audited FY24–25 financial results and preliminary projections for next year. Mr. Ristakasian led the briefing, saying local revenue exceeded budgeted expectations by roughly $10 million and overall revenue finished about 3.8% higher than planned. He reported that the district used approximately $5.7 million to balance the current year and that the unassigned fund balance sits just over the district policy target of 5%.
Ristakasian noted several revenue variances that affected results, including stronger-than-expected investment income, unanticipated adequacy funding, and last‑minute charter reimbursement adjustments that together accounted for a material portion of the positive variance. On expenses, he said the district controlled costs and came in about $300,000 under projections for the year after contingencies.
Looking ahead, the administration outlined a budget calendar with a March 30 workshop and a target final budget approval on June 8. Ristakasian cautioned that governor’s proposals on basic education and adequacy funding remain a starting point and that federal reimbursements and state timing could change preliminary calculations. He said the governor’s proposal could deliver up to $5.2 million for BASD if enacted in full, but the administration will only show an adequacy line item of $4.5 million in the preliminary presentation because of the way the state would roll adequacy into baseline calculations.
The presentation also described capital planning and debt: a planned 2026 bond series (pricing imminent at the time of the meeting) will increase outstanding principal and produce roughly $2.6 million of additional fixed cost tied to a Newfound Hill Elementary project through 2032 (about 0.58 mills). Administrators said capital reserve reductions are anticipated as summer projects proceed but that reserves pay many down‑payment costs and prevent operating fund draws for capital work.
Board members asked questions about purchase-services drivers (including use of substitutes, coaches and contractors), charter tuition verification timelines (March), and local assessed value assumptions (a modest 0.29% tax base change projected for the year). The administration said more refined numbers will be plugged into the March workshop once state and federal timing is clearer.