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Millersburg Area SD hears budget showing deficit driven by cyber-charter and special-education costs
Summary
The district’s proposed 2024–25 budget shows a projected shortfall driven mainly by cyber-charter payments and rising special-education costs; the board was presented with staffing adjustments, a teacher step correction of $360,000 and a proposed 5.4% adjusted millage index, which the presentation estimated would raise the median homeowner’s tax by about $119 per year.
The Millersburg Area School District board received a high-level presentation of the proposed 2024–25 budget on a meeting item that identified cyber-charter and special-education spending as the chief drivers of a projected deficit.
The secretary, who presented the budget, said the district is budgeting a teacher step correction of “$360,000” for next year and an adjustment for secretaries totaling “$46,000.” He reported the district has budgeted roughly “$2,200,000” for cyber-charter costs and said special-education expenditures have risen sharply in recent years.
The nut graf: The board was told those three categories — cyber-charter payments, special-education placements and salary and benefit increases — account for the majority of the pressure on the general fund, and that the administration is proposing a 5.4% adjusted index (millage) to offset part of the gap. The presenter said a median-assessed Millersburg home (assessed value cited as $89,200) would see roughly a $119 annual increase if the full adjustment is accepted.
In the presentation, the secretary walked through object-code line items and projections. He noted the district is budgeting conservatively on revenues and that federal one-time pandemic funds (ESSER) have largely phased out. He emphasized that roughly 90% of expenditures are directed toward instructional purposes. On benefits, the presenter cited a projected medical-insurance increase of about 9.5%.
Board members asked for scenario modeling showing the impact of taking less than the full 5.4% adjustment — for example, 50% or 70% of the allowed increase — and requested five-year projections for those alternatives. The presenter said multi‑year scenarios are difficult to finalize until salary negotiations are settled and several external variables are known, but he agreed staff would try to provide comparative scenarios for the board’s review.
The presentation also called attention to a funding formula the presenter described as “broken” for cyber charters: the presenter said the district estimates its per‑student special‑education cost is around $24,000 while some cyber charters have lower per‑student costs and the formula currently allocates much higher payments to cyber providers. He stated, “we’re paying cyber charters $33,000 for every special ed student,” and said reform of that formula is a state-level issue.
What’s next: The board is scheduled to place the proposed budget on next week’s agenda for approval of the proposed budget, post it for the required 30‑day public review period and return on June 12 for final budget approval.
Sources and attribution: Quotes and figures in this report come from the board presentation given by the board secretary during the meeting.
