Manchester Township School District outlines options after $5.7 million budget overrun

The Manchester Township School District business administrator told the board on March 31 that the district’s tentative 2026–27 budget, as submitted in December, exceeds the statutory cap by about $5.7 million and outlined how administrators plan to close the gap.

"The budget is at statutory cap," the business administrator said, adding that the projected increase in health benefits accounted for roughly $3.8 million of the excess and that health benefits had increased "over 30%" this year with another large increase projected next year. To reach the cap, the administration proposed approximately $2.4 million in cuts — largely affecting staff — and about $1.0 million in cuts to district operations. Officials also plan to use a health‑pension waiver to avoid a further $322,000 in reductions.

The business administrator said the district expects to reduce 13–15 positions overall but will rely primarily on attrition: "We are doing the majority of this through attrition," the administrator said, noting that eight to nine positions are already being absorbed through retirees or departures.

State aid shortfalls have compounded the problem, the administrator added. While the funding formula indicated the district should receive about $1.9 million in additional state aid for the year, statutory caps limited the increase to roughly $380,000; combined with a similar shortfall the prior year, the administrator said the district missed an estimated $3.0 million over two years that would otherwise have narrowed the gap.

The proposed budget preserves many services the administration listed as priorities: student transportation, after‑school programs, clubs and sports remain funded in the current plan. The budget also includes program expansions and mandated costs, the administrator said: adding a preschool section (bringing the total to 17 preschool classrooms), funding for 32 charter‑school students (about $640,000), projected payments described in the transcript as "ABLU" to families attending private schools within a 20‑mile radius (projected at about $1.4 million), and funding to support roughly 50 out‑of‑district special‑education placements (about $4.8 million).

Administrators plan to restore a fourth day of extended‑school‑year services in many programs after running a three‑day program last year, and they said federal grants were budgeted conservatively at 85% of current year levels to reflect uncertainty in final grant awards.

Two capital projects were identified in the presentation: upgrading the school and bus radio system so district radios continue to communicate with police after a local public‑safety radio cutover, and installing two bathrooms at Ridgeway to convert rooms for kindergarten use. The district said part of the radio upgrade will be supported by police‑secured grant funding and the balance paid from the capital reserve.

The administration scheduled a public hearing on the proposed budget for the board’s April meeting on April 29, when the board will hear public input and review more detailed budget documents before adopting a final budget.

What’s next: the board set April 29 as the public hearing on the budget and will consider any changes before a final adoption vote at a subsequent meeting.