Business manager presents 2026–27 budget; board hears $11,000 state subsidy vs. ~$14,800 cost per pupil gap

Business manager Joanie presented the Keystone Central School District’s preliminary timeline and revenue comparison for fiscal year 2026–27, telling trustees that state contributions amount to roughly $11,000 per pupil while the district’s internal cost per student is about $14,806. Joanie framed the roughly $4,000 per‑student gap as a structural shortfall the district must cover with local revenue or other adjustments.

Joanie walked the board through projected increases and savings: line items that raised concern included a possible insurance increase capped at 20 percent, higher costs for electricity/propane and transportation, additional special‑education transportation and alternative education expenses, and inflation in hardware/software. She said cyber‑charter reform and cost avoidance so far have reduced tuition outlays by an estimated $500,000 this year with a potential to reach $750,000 by year‑end.

Trustees pressed for clarity about how charter tuition payments are calculated and why some per‑pupil tuition figures (e.g., $32,000 for certain brick‑and‑mortar placements, $27k for special‑ed cyber placements) exceed state per‑pupil subsidies; Joanie showed reconciliations that deduct state contributions and isolate the net expense the district carries. She also ran through scenarios showing how different millage increases (0.88, 1.75, 2.63, 3.50 mills) would affect the district deficit, and explained offsets from reduced discretionary expenses and one‑time savings (for example, staffing study adjustments and technology purchase deferrals).

The board did not adopt a final budget at the work session; Joanie and trustees agreed to refine the presentation (including side‑by‑side comparisons of Keystone cost vs. charter per pupil) and return to the finance committee and the March 12 voting meeting with updated summaries and any recommended budget motions.