District finance chief flags nearly $3 million state‑aid shortfall, steep health‑benefit costs

The district business administrator warned the Manchester Township School District board that a combination of capped state aid and sharply rising health‑benefit costs has created significant budget pressure heading into next school year.

At a board meeting, the business administrator said the school funding formula initially called for larger increases but that caps produced a two‑year state aid shortfall of “almost $3,000,000,” and that state‑level plan changes have increased premiums. He told the board the district is spending about $18,000,000 on benefits overall and that roughly $16,000,000 of that is for health benefits.

The administrator said this year’s health‑benefit premiums rose about 34% for the district and described continuing uncertainty about plan design and future premium projections. He said changes in the state’s aggregated educator plan (EHP) and legacy plans have affected contribution calculations, contributing to the gap between the funding formula and monies the district actually received.

The presentation also outlined other pressures: enrollment declined by about 77 students year‑over‑year, the district serves nearly 700 special‑education students, and roughly one‑quarter of enrollment is supported by individualized education programs (IEPs). The presenter said those factors, together with rising contract and benefit costs, mean the district needs roughly $2,400,000 in additional resources to balance operations under current assumptions.

Board members did not take final budget action at the meeting; the business administrator said staff will continue to explore options, including shopping benefits to the private sector and monitoring state decisions tied to the cited Chapter 44 provisions and an upcoming renewal timeline.

The budget discussion concluded without a vote; the board moved on to routine personnel items later in the agenda.