Southmoreland superintendent presents budget outlook; board adopts Act 1 resolution
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Summary
The district presented its annual budget timeline and fund-balance analysis; the board adopted the required Act 1 resolution (index ~4.7%), preserving budget flexibility while noting uncertainties over federal revenue and cyber-charter costs.
During the Jan. 20 meeting, Southmoreland's business manager presented the district's budget calendar and a fund-balance analysis covering FY 24–25. She reported a $213,464.66 decrease in total fund balance for 24–25, attributing the change largely to cyber-charter expenditures that exceeded budget. The presentation included salary assumptions (an overall increase of $572,178.05, including three additional van aids for IEPs) and a 10% projected increase for healthcare costs.
The business manager explained the Act 1 index and its legal role: adopted annually under Pennsylvania law to document the district's compliance with the Taxpayer Relief Act. She said adopting the Act 1 resolution does not itself raise taxes but preserves the district's statutory options should it seek to levy increases within the index. The board asked for an estimate of the index effect; administration identified the index at about 4.7% in materials provided to members.
After brief discussion, the board adopted the Act 1 resolution as required by state law. Administration outlined next steps for budget development: initial expenditure draft in February, revenue draft in March, refinement through April and May, a 30-day public display of the preliminary budget and final adoption by June.
Board members raised questions about unassigned fund balance (reported at about $2,582,795 for FY 24–25) and asked for access to full past budgets and more detailed expenditure data as the process proceeds.