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Conestoga Valley finance staff present five-year outlook; board gives direction for a 2.5% proposed millage increase
Summary
Business manager told the board the district faces a roughly $4.2 million gap under current projections; after reviewing scenarios tied to state adequacy funding and possible cyber charter reform, the board directed staff to prepare a proposed budget using a 2.5% millage increase for the May 12 presentation.
District finance staff presented five-year projections and budget scenarios at the April 22 board meeting that show a projected deficit under current assumptions.
The business manager said revenues are currently about $91.2 million while total expenditures with staffing included are estimated at $95.5 million, a $4.2 million shortfall. She explained the district used scenario modeling to show the impact of state resources and millage changes: one mill equates to just under $3.5 million in revenue and each quarter-point of a percent in the millage produces roughly $139,000.
Under the scenarios presented, a 2.75% millage increase combined with partial receipt of the states ready-to-learn adequacy supplement would reduce the gap substantially; however, administrators recommended prudence given uncertainty about the final state budget and cyber-charter reforms. The board discussed trade-offs, the compounding effect of annual millage increases, and the risk of under-indexing year after year.
After discussion the board provided direction: prepare a proposed budget assuming a 2.5% millage increase and return updated numbers at the May 12 meeting, noting the May meeting will include required public notices and a 30-day period before final adoption.
Board members emphasized they preferred conservative increases but recognized that state funding timing (and the governors budget) may change the final recommendation. The business manager said she will run updated scenarios for the May 12 proposed budget and provide the board with multiyear impacts of selecting different percentages.
