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Finance committee hears budget update; staff report $2.7 million preliminary gap and propose $4 million HVAC allocation from fund balance
Summary
District finance staff presented a multi-year budget outlook, reporting a preliminary $2.7 million gap, describing staffing and capital assumptions, and proposing a $4 million allocation from fund balance toward the HVAC project while pursuing grant opportunities including a DCED HVAC grant (up to $5M with 25% match).
Don presented the finance committee with the district’s projection and multi-year assessment, telling members the district faces revenue pressures and a preliminary $2.7 million budget gap next year. "So right now, we're looking at a $2,700,000 gap," Don said, and he explained the administration’s next steps: reviewing about 30 departmental and building budgets to identify possible reductions and refining revenue assumptions ahead of a full budget presentation next month.
Don described revenue constraints — limited assessed-value growth, a 25.48% tax-exempt local share and Act 1 tax-rate limits — and noted key assumptions such as health insurance increases and staffing costs. He described capital planning that has set aside recurring capital contributions (initially $100,000 rising to $500,000 annually in later years) and outlined a planned fund-balance structure consistent with GASB classifications. Don proposed allocating $4,000,000 of assigned fund balance to the HVAC project and said the district will seek grant funding (noting a DCED grant of up to $5 million with a 25% local match) to reduce local costs. Board members asked for five-year cost projections for proposed new positions and raised concerns about adding staff when revenue is constrained; the administration said some positions are contingency placeholders tied to enrollment and that contracting will continue where hiring is not feasible.
On staffing, board members flagged a persistent difficulty filling a school psychologist position and questioned if budgeting for an unfilled role made sense versus contracting services; administration said some contracted psychologist support will likely still be required but that a state-funded paid internship program may help build a candidate pipeline. Don said he will present a fuller budget next month with the aim of closing most of the gap before the board adopts a final budget.
