Staff member outlines Franklin Area SD 2026–27 budget outlook, flags 'not to exceed the index' resolution

A staff member for Franklin Area SD told the board the administration will place a “not to exceed the index” resolution on the January agenda as the district finalizes the 2026–27 budget.

The staff member said the district had earlier projected a $2.5 million loss for 2026–27 but now expects a roughly $750,000 shortfall, with several items still undetermined including medical and insurance rates and the governor’s upcoming budget. “So the resolution is on the agenda to go up to the index, not exceed the index,” the staff member said, noting the vote on that resolution must occur in January.

Why it matters: the resolution would preserve the board’s option to raise millage up to the statutory index without setting a specific increase now. The staff member emphasized uncertainty remains around state funding, health-care costs and program changes that will affect local spending.

Key cost drivers and program notes included the following: the district currently reports 99 students enrolled in outside cyber programs (down from about 120 last year), and staff estimated the new funding formula under Act 47 would reduce outside-cyber payments from roughly $2.2 million to about $2.0 million if that enrollment holds. The board discussed recent outreach—including work with Rockets Academy in Titusville—to bring families back into the district’s own cyber program, and the chair said a change in truancy rules limiting assignments to outside charters should also help reduce outside-cyber counts.

On special education, staff reported outside placements have fallen to 17 from 39 last year after the district created dedicated in-district classrooms. The staff member estimated in-district support costs at about $25,000 per student (teacher, paraprofessionals, nurse and administrative oversight) but noted that shifting students in-district reduces tuition payments and transportation costs.

Other budget items flagged for 2026–27 included a vo-tech tuition increase (the staff member referenced an approximate $60,000 change tied to higher health-care costs and added staffing), a planned reading-curriculum replacement that will create a large line item (staff cited prior adoption costs for Reading Wonders of roughly $330,000 plus about $100,000 in professional development and materials), and a debt-service line of $163,725. Staff also warned insurers are projecting roughly a 10% increase in property, liability and workers’ compensation costs.

Operational details noted by staff: the retirement contribution rate is expected to move from 34 to about 33.59 next year; the district will continue its 1:1 Chromebook replacement program for sixth- and ninth-graders; and the district uses the IRS mileage reimbursement rate (cited as $0.725 per mile).

No formal board vote was taken on the ‘not to exceed the index’ resolution at the meeting; staff said the resolution would be presented for a January vote and asked the finance committee to prepare remarks. The board also discussed nominating a checks/financial signer (a past volunteer, Tracy, was mentioned) but recorded no formal appointment during this session. Chair (S2) adjourned the meeting at 6:35 p.m.; participants discussed an executive session to follow but no additional public actions were taken on the record.

Attribution: quotes and specific figures in this account come from remarks by the staff member and the chair during the public meeting.