Bermudian Springs tentatively adopts preliminary 2025–26 budget, cites Act 1 index and rising nondiscretionary costs

The Bermudian Springs School Board tentatively adopted its preliminary 2025–26 budget at the board’s May meeting, voting to realize the revenue figure associated with a preliminary millage set at the Act 1 index (5.4%). Chair called the motion and declared it carried after the formal roll-call procedure.

The district’s finance presenter, Justin Pier, said the updated preliminary budget showed a small net positive change of $31,475 from April projections and that the district would use approximately $1,160,001.78 of fund balance at the 5.4% index to reach a balanced preliminary budget. Pier identified the largest budget drivers as finalized collective-bargaining agreement (CBA) salary/benefit increases, special-education costs and cyber‑charter tuition payments, and he cited an $84,549 savings resulting from a new Apple device lease for classroom iPads and MacBooks.

"Salary and benefits represent roughly two‑thirds of our budget," Pier said, noting salary and benefits account for about 65–68.5% of overall spending. He also described several offsetting items: a $478,963 total related to CBA salary adjustments and roughly $312,300 in medical‑premium savings that lower the net impact of those increases.

Pier explained the Act 1 index implications for millage and fund‑balance projections and outlined alternatives: each step below the 5.4% index reduces revenue by about $265,787 and increases the projected deficit materially, with a zero‑increase scenario pushing the multi‑year deficit to a substantially larger figure.

Board discussion focused on structural state funding shortfalls and mandated costs. Secretary Jen, speaking during the discussion, urged the district to press lawmakers about shifting retirement and special‑education costs to state funding. "We get about a 30% reimbursement for special education," the board member said, "which means about 70% of those mandated costs fall to local taxpayers." The board member also cited roughly $1.8 million in cyber‑charter tuition as a continuing pressure on local budgets.

Pier also highlighted other numeric items in the presentation: the general fund began the period with $10,538,775.52 and closed the month at $7,411,205.74 after planned transfers and principal bond payments; the cafeteria fund showed an ending balance transcribed as about negative $91,355.48 (factoring federal/state reimbursements); and the cap reserve ending balance was approximately $992,479.90.

The board’s motion tentatively adopted the revenue and expenditure figures cited in the motion (the transcription lists $7,521,649 as the revenue figure presented in the motion). Pier reminded members that, under Pennsylvania school code, the board may reduce the millage between preliminary and final adoption but may not increase it after the preliminary vote. The board holds the final budget/millage vote in June.

What happens next: the board will post the required preliminary budget documentation, allow the statutorily required 30‑day review period, and return in June for the final adoption vote when members may lower—but not raise—the preliminary millage.

Ending: The board carried the tentative budget motion and will consider final adoption at its June meeting.