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Business manager previews budget shortfall; proposes one‑time fund‑balance uses and grant matches
Summary
The finance update showed a potential 2024–25 shortfall of about $621,906 under current assumptions; administrators proposed using targeted fund‑balance amounts (including $45,000 for the ELA adoption and up to $22,000 for bus‑patrol camera installs) and highlighted a new PCCD school‑mental‑health grant ($442,800) and extra Homestead/Farmstead aid that improve the picture.
The committee’s finance segment covered short‑term revenue gains, proposed uses of one‑time fund balance and several pending grants and purchases that will affect next year’s budget.
Business manager report: The district rolled a matured CD into a short‑term instrument at roughly 5% and expects additional interest revenue; the business manager estimated the fund balance carrying forward to be about $16.67 million after year‑end and proposed using portions for clearly identified one‑time purchases (technology leases, feasibility study, ELA purchase PD and transition costs, and a $200,000 bond reserve). The preliminary projection showed a 2024–25 budget shortfall of roughly $621,906 under current assumptions.
Grants and offsets: Administration announced a PCCD competitive award for school mental health of $442,800 (two years) to fund three school‑police‑officer salaries and related safety improvements; administrators proposed redirecting $150,000 of that grant funding in the operating plan to cover a planned LPN hire ($41,000) for two years and other items. The business manager also reported that Homestead/Farmstead relief increased, producing about $238,000 more in revenue this year than expected.
Capital and major projects: Staff described E‑Rate approvals for category‑1 fiber connections (district cost after E‑Rate ~$4,539.60) and for category‑2 wireless/firewall projects (total cost ~$279,342 with E‑Rate funding of roughly $169,758; district share estimated ~ $109,583.92). Administration asked the board to authorize a PSFI commitment letter obligating a 25% match for an asbestos abatement and flooring project at the high school (projected total $850,000–$1,000,000; district 25% share estimated around $212,500–$250,000). The administration recommended lowering the feasibility study estimate to about $16–17k and recommended a local vendor (Alloy5) to begin work this summer.
Tradeoffs and next steps: Administrators proposed a mix of fund‑balance use and a modest tax increase if necessary; examples were shown for 1%–5% increases and their effects on a typical homeowner bill. The administration will present a preliminary tax limit to the board and asked members to consider whether to adopt a proposed preliminary index at the next meeting. Final budget adoption remains scheduled per statutory timelines.
Next step: The administration will present the PSFI commitment letter, vendor contracts (feasibility study) and the preliminary budget figures to the full board; committee members requested a list of positions funded through grants and more details about equipment replacement priorities (dishwasher/steamer) for final decisions.
