Preliminary 2026–27 budget shows nearly $4.8M gap; board weighs tax, fund balance and program options
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Summary
CFO Amanda Weaver presented a preliminary 2026–27 budget projecting an adjusted anticipated deficit of about $4.77 million. Board members discussed using the Act 1 adjusted index, millage increases, fund balance usage, potential revenue from future commercial development and measures to curb costs including reducing cyber charter outflows.
The Dover Area School District's chief financial officer, Amanda Weaver, presented a preliminary 2026–27 budget that shows a projected shortfall of roughly $4.77 million under current assumptions.
Weaver said the district's model reflects uncertainty in state funding: the governor's proposed increases for basic education and special education were smaller than historical norms, and updated average daily membership (ADM) counts will not be finalized until the enacted budget. She noted that the "Ready to Learn" adequacy funding has been increased in recent years but that decreases in basic education allocations have offset some gains in other lines.
The presentation included a fund‑balance snapshot: nonspendable, committed, assigned and unassigned designations were explained, and administration warned that if current trends persist the district could deplete a substantial portion of fund balance within three years. Weaver presented scenario modeling showing that even an Act 1 indexed millage increase might not close the gap; she estimated that the maximum allowable increase under the adjusted index would still leave an estimated $3.2M deficit in the first year.
Board members and administrators discussed several mitigation options:
- Adjusting millage up to the Act 1 adjusted index (with legal limits and taxpayer impacts). - Strategically using fund balance (with a projected cap reserve of about $7.5M noted as the source for some capital items). - Exploring revenue opportunities from future commercial development (warehouses or data centers projected farther out in the five‑year forecast) and a potential solar project to reduce energy expense over time. - Reducing outflows to cyber charter providers by investing in the district's own Dover Cyber Academy (ideas included hiring a dedicated professional to expand and market the program), a step administrators said could yield net savings if it retains sufficient students.
Directors emphasized that labor costs (salaries and benefits) comprise roughly 65% of spending and that unfunded mandates, special education placements and cyber charter tuition are major drivers. Several board members asked for more detailed scenario breakdowns for March, including alternative index rates (3.5%, 4.5% etc.), line‑item breakdowns tied to object codes, and more complete transportation reimbursement detail. Weaver offered to provide additional forecasts and to incorporate board direction into the March presentation.
No final budget decisions were made at the meeting; the board asked administration to return with a narrower set of options and clearer cost/benefit calculations for any proposed revenue or savings measures.