Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Budget Finance topic
No spam. Unsubscribe anytime.
Audit shows $2.01M fund‑balance gain; early look at 2026–27 budget shows $3.6M shortfall
Summary
Audited 2024–25 variances produced a $2,009,942 increase to the district fund balance; administration’s early 2026–27 budget shows revenues of about $54.9M against $58.5M in expenditures, leaving a projected $3.6M shortfall before any Act 1 index action.
District administrators presented audited final variances for 2024–25 and an early look at the 2026–27 budget.
For 2024–25, the audit showed revenues were about $2.3 million higher than projected and expenditures were roughly $700,000 lower, yielding a net $2,009,942 increase to the district’s fund balance. Administration attributed the variance to higher-than-expected local real‑estate tax collections (about $300,000), increased earned income tax (EIT) receipts (about $200,000), an additional $120,000 in the state basic education subsidy after the Commonwealth’s budget passage, extra foundation contributions (about $110,000) and a $34,000 donation from East Allen EMS to help fund AED equipment. Additional one‑time grants and reimbursements (including cyber‑charter and student‑teacher grant adjustments) also contributed to the improved position.
On the 2026–27 early look, administrators used the state Act 1 index of 3.5% as a reference point. Early assumptions showed total revenues of about $54,917,342 and proposed expenditures of about $58,527,314, producing a projected shortfall of roughly $3.6 million. If the district used the full 3.5% Act 1 index, that would generate approximately $1.2 million in additional revenue and reduce the gap to about $2.3 million, but the administration said that does not mean the board will adopt the full index; further budget work, staffing confirmations and insurance renewals remain to be finalized.
Administrators said cost drivers include an estimated $1.2 million increase in salaries, $1.3 million in benefits, a projected $870,000 rise in health and dental insurance, and fluctuations related to cyber‑charter tuition calculations. The board was told it will see ongoing budget presentations through May, with a proposed final budget presentation on May 6 and adoption on May 13, and a final budget presentation and adoption in June if needed.
Next steps: the board will be asked to adopt an Act 1 resolution at the January 21 meeting and will continue monthly budget updates.
