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Bethlehem Area SD sees $8M-plus budget gap; board asks for options before May
Summary
Officials reported an $8M-plus projected shortfall and $3.99M in planned reductions; administrators said they may use fund balance, further personnel reductions, or a millage change and will return with refined budget options at the next meeting.
District finance staff told the Bethlehem Area School District board on April 20 that revenue performance is steady but expenses are high and the district faces a remaining budget gap of just over $8 million under current baseline assumptions.
Mister Ristakasian summarized the budget position: revenues year to date are “doing pretty good,” but expenses are about 75% used with 2½ months left in the fiscal year. He noted accounting recognition of the Baptist building sale as a one-time revenue item and described planned reductions of about $3.99 million — largely vacancy management, administrative reorganizations, deferred equipment purchases and other non-program reductions.
Administrators outlined the package of assumptions driving the numbers: a working assumption of 50% state adequacy funding, 100% of proposed BEF/SEF funding, and a 3.5% proposed millage increase. Under those assumptions and current spending trends the district projects a shortfall “just over $8,000,000.” The presentation listed options to close the gap, including additional reductions in personnel and programs, use of unassigned fund balance, and revisiting the millage assumption (the board could move beyond a 3.5% increase up to the statutory maximum if the board chooses).
Board members pressed for more detail on several lines. One member warned against deferring facility or equipment investments after a severe winter and asked that the administration protect critical facility work. Others requested detail on retirements and attrition assumptions that underpin projected personnel savings; staff said they would provide lists of expected retirements and further staffing data.
Administrators said they will return at the May meeting with a refined supplemental budget and additional options to reduce the gap while trying to preserve class-size ratios and key programs. The board gave direction to continue finding non-tax levers where possible but acknowledged millage is a last-resort option to close the remaining gap.
No formal vote was taken; the committee moved to the next agenda items and scheduled further budget review at the next meeting.
