Business manager outlines budget calendar, Act 1 index and possible special‑education exception eligibility
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Summary
The business manager updated the committee on the budget calendar, said the state Act 1 index is 3.5%, that the district will apply to PDE by March 5 for possible special‑education exceptions (rough estimate ~$900,000 eligibility), and noted that state changes to charter tuition formulas could reduce district charter costs by roughly $350,000.
The district’s business manager presented a detailed budget update and calendar, highlighting near‑term deadlines and the potential for Act 1 exceptions tied to special‑education cost growth. He said the governor’s proposed budget would add roughly $270,000 to the district’s basic education allocation and that the Act 1 index for 2026–27 is 3.5 percent. Administration will apply to the Pennsylvania Department of Education for special‑education exceptions (March 5 deadline) because special‑education expenditure growth exceeded the index in recent years; a worksheet estimate presented in committee suggested potential eligibility of about $900,000 (administration cautioned the figure is an estimate until PDE calculates final entitlement).
The business manager also described state changes to charter‑school tuition calculations that reduced the cyber‑charter special‑education rate and could yield an estimated $350,000 in lower expenses for the district this year; administration said reconciliation with charters will occur at year‑end and that retroactive adjustments will be resolved through the normal reconciliation process. The committee was given a calendar for the proposed‑final budget presentation (April 15), proposed final approval (April 30) and final budget adoption (June 18) in advance of statutory deadlines.
Committee members asked technical questions about which revenue streams still arrive after the fiscal year close and how per‑capita tax elimination affects the 2026–27 budget; administration clarified those timing issues and discussed debt‑service timing, bond proceeds receipt and interest/principal classification shifts. The business manager also said the district completed a bond issuance the same day and received funds to pay contractors for the capital program.
Administration said it will prepare the PDE exceptions application materials in March and return to the board with the recommended path for use (if any) of awarded exception amounts when presenting the proposed final budget.