Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the School Budget topic
No spam. Unsubscribe anytime.
Kutztown Area School District lays out referendum path and tax scenarios to close $1.9M gap
Summary
District staff presented 2025–26 budget options to the budget finance committee, saying a referendum on May 20 would lock in a proposed 10.629% increase (about $2.3 million), while smaller increases or a 0% scenario leave varying deficits; staff flagged uncertain state charter funding and a possible PDE special-education exception.
Presenter (S2) told the budget finance committee the district faces multiple revenue pressures for the 2025–26 budget and outlined two simultaneous paths: submit referendum language to the elections board by March 21 for the May 20 ballot or pursue lower tax-increase options and expense reductions.
The presenter said the district’s baseline assumptions had been updated since the Feb. 24 briefing and described how taxable assessed-value declines and state-policy uncertainty are tightening revenue. “There’s no way to move. So we essentially have two paths that must occur at the same time,” the Presenter said, describing a referendum path that would put a 10.629% increase on the ballot (projected to generate about $2.3 million) and an array of lower-percentage options (5.01% ≈ $1.1 million; 4% ≈ $874,000; 1% ≈ $218,000).
Why it matters: staff warned that without the referendum or additional revenue the district will need to combine multiple expense actions — from not filling some positions to consolidating services — because personnel is the largest cost driver. Presenter also flagged two big unknowns that could materially change the picture: unsettled labor or vendor agreements (together modeled at roughly $618,000) and pending state cyber-charter funding reform that could reduce or reallocate reimbursements the district receives. The presenter said last year the district received a $107,000 transition payment that would not be provided under the governor’s initial proposal.
Details and options: the committee reviewed a tracking list under a 5.01% scenario identifying potential savings and revenue actions: hold an open high-school science position, consolidate a middle-school library program, reduce some part-time aides, combine transportation and food-service functions through attrition and consider student activity fees (staff estimated $100 per secondary participant could generate roughly $22,000). Staff described the calculations that produced both a potential $460,000 surplus under a favorable 5% outcome and larger deficits under more pessimistic assumptions; board members asked staff to rerun figures after questioning which baseline (Feb. 24 or March 17) had been used for the 0% scenario.
State exception and timing: the Presenter said the district intends to apply for Act 1 exceptions from the Pennsylvania Department of Education and believes it may qualify for a special-education exception of roughly 1.0183%. If the board chooses the referendum path, the district must finalize language and meet election deadlines in March for placement on the May 20 ballot.
Next steps: staff said they will recalculate the 0% numbers, post updated scenarios and supporting slides to the district website, and return to the budget finance committee at the next scheduled meetings (noted for April and May) with refined projections.
