McGuffey finance director flags early $3 million shortfall in 2025'6 outlook

The district s finance director presented a preliminary budget outlook for 2025'6 that showed a material gap between anticipated revenue and projected expenditures.

As of the Jan. 31 snapshot the district had budgeted nearly $35 million in revenue for the 2024'5 year and recorded about $25.8 million as receivable to date. For the 2025'6 proposed budget the director reported estimated total revenue just under $34 million and projected expenditures near $37 million, producing a preliminary $3.0 million shortfall. Key pressures cited were contractually scheduled salary increases (a typical 3% step) and an estimated 9% rise in the district s healthcare costs.

The presentation walked the board through revenue drivers and options: the Act 1 index provides the district with a potential millage-cap increase (the director noted the theoretical maximums and how a modest millage uptick would counter some deficit), and the board discussed the timing of the state s property tax relief allocations and final Department of Education subsidy notices. The director also called out local assessed-value changes related to coal-depletion appeals as a factor reducing tax base and noted cyber and charter tuition costs (which can exceed $15,000 per regular student and $35,000 for some special-education placements) as a major recurring local expense.

Board members asked follow-up questions about how much of the budget is variable and whether particular revenue changes had definitive timelines; the finance director said the district will continue to refine building-level budgets and will present a preliminary 2025'6 proposal at the March meeting with a final adoption expected in June to meet the July 15 state deadline.

The board asked staff to continue