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Millersburg Area SD previews 2026–27 budget as rising health‑care costs drive deficit concerns
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Summary
At a regular board meeting, district staff presented a preliminary 2026–27 budget that includes a proposed 3.3% tax increase and projects a mid‑six‑figure deficit driven largely by a projected 19.2% rise in medical benefit costs.
District staff presented a preliminary 2026–27 budget and told the Millersburg Area School District board that rising health‑care costs have pushed the district into a projected deficit and could force cautious spending decisions.
The staff member presenting the budget said the district is projecting a deficit (figures in the presentation ranged up to several hundred thousand dollars depending on reconciliation assumptions) and proposed a 3.3% tax increase to help narrow the gap. "Our medical benefits, 19.2% increase for next year, $386,000 increase," the presenter said, attributing the jump to recent claim performance.
The presentation, prepared as of March 31, showed that 63% of the district’s expenditures are salary and benefits and that 91% of total expenditures go to instruction and instructional support. The presenter said the district is in the second year of a five‑year collective bargaining agreement that includes modest salary movement and a one‑time $1,500 403(b) contribution for some teachers in the coming year.
Presenter notes on spending: special‑education costs have fallen from previous highs—citing a reduction in IU contract expense—and some purchase and property service categories are trending down. The district also reported stabilization of outside cyber‑charter enrollments and signaled potential reconciliation under a new state formula that could reduce current cyber costs compared with preliminary projections.
On revenues the presenter said the district is budgeting for essentially flat state funding, with local taxes and state funding split roughly half and half. The budget package as presented includes a 3.3% tax (the presenter quantified the millage change as an increase of 0.8649 mills) to provide additional revenue; the preliminary schedule in the presentation shows the proposed budget will be posted for public review and the board will consider the proposed budget at the May 7 meeting, with a final vote scheduled for June 11.
Board discussion emphasized caution: members asked that hiring or position approvals be considered within the formal budget process given revenue uncertainty. The superintendent and staff said no new positions are included in the proposed budget and that the administration will monitor expenses and state funding developments as the year progresses.
The board did not vote on the preliminary budget at the meeting; staff will submit the material in Pennsylvania Department of Education format for the board’s May consideration.
