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Spring Grove previews 2026–27 budget draft showing multi‑million gap; administration cites asset sale and millage option to close shortfall
Summary
Business office presented a preliminary 2026–27 budget showing an initial $3.3 million gap under current assumptions; staff flagged a possible $500,000 sale of a fixed asset and an enhanced Act 1 index (4.7%) as potential revenue options to reduce the deficit.
Business and finance presented the district’s first draft of the 2026–27 general fund and the financial choices ahead.
Finance lead Mark Zapp told the board that baseline expenditure pressures (salary/benefit increases, contracted services) push expenses up roughly $2.2 million. With current revenue assumptions and an anticipated beginning fund balance, the draft shows a $3.3 million shortfall before accounting for possible state funding increases or asset sales. Zapp summarized the draft numbers: the initial projection shows “a deficit of $3,300,000.”
Administration identified two discretionary levers the board could consider: (1) booking proceeds from the planned sale of an ESC building portion to the historical society (an estimated placeholder of roughly $500,000) and (2) exercising the district’s allowable enhanced Act 1 index (4.7%) to increase millage; administration said a full use of the 4.7% cap would yield roughly $2.2 million in additional revenue. Zapp described the asset sale as revenue to the general fund rather than a capital reserve deposit, and the board discussed whether to earmark proceeds for debt or apply to the operating gap.
Why it matters: the draft frames near‑term choices about potential tax increases versus use of one‑time revenues and reserve balances. Board members pressed for more detail on capital projects (YMCA move timing, ESC budget reductions) and asked administration to run scenarios showing the net tax impact and alternatives such as targeted cuts or use of bond/capital reserves.
What’s next: administration will refine the draft with updated state revenue proposals and provide millage‑impact scenarios and capital‑project reconciliations at budget committee meetings. No millage decision was made.
