Penn‑Trafford proposes $71.93M preliminary 2026–27 budget; board weighs 4.125‑mill increase and cuts

Penn‑Trafford School District administrators presented a preliminary proposed budget for the 2026–27 school year on May 4 that estimates $71,932,909 in expenditures and $70,348,011 in revenues, leaving a projected deficit of $1,584,000.

"The presentation for the 2627 school year starts out with estimated proposed expenditures of $71,932,909," Rebecca, the district's business manager, told the board. She said revenues in the proposal total $70,348,011 (local $38,458,557; state $31,036,374; federal $573,080; other/lease $280,000) and that salaries and benefits — largely contracted costs — represent about 74% of proposed expenditures.

Rebecca walked directors through the budget timeline, assumptions and major line items: a $2,000,000+ lease receivable from the Administrative Building appears in the statements as other revenue; transportation and earned‑income tax estimates were reduced slightly; and Ready‑to‑Learn/adequacy funding and retirement/FICA subsidies together add several hundred thousand dollars to the revenue side. On the expenditure side, she called out medical costs, security and technology increases as key drivers.

Administration outlined three broad options to close the gap: (1) a 4.125‑mill increase (estimated to bring in about $1,300,000) combined with anticipated state adequacy funding (roughly $397,000) could produce a surplus; (2) a smaller millage increase (1–3 mills) would likely require reducing debt‑service transfers and personnel; or (3) no tax increase would require deeper staff and program cuts while also reducing debt service. Rebecca emphasized the numbers shown were a "worst‑case" scenario and that she would return to the board with updated figures and recommended cuts if needed.

Board members pressed for detail on multi‑year deficits, fund‑balance history and prior uses of reserves. The administration said the audited fund balance as of June 30, 2025, is $6,072,105 (the state maximum unassigned is about 8% = $5,717,556); administrators said their goal is a 12% unassigned fund balance (approximately $8,576,335). Several directors warned against using capital/reserve transfers for recurring operating needs and asked for prioritized lists of potential cuts; one director described the district's financial outlook as "horrific" and urged urgency on solutions.

Charter and cyber‑charter expenses drew separate scrutiny: administration said the district currently has about 97 charter students and that charter tuition costs are roughly $1.2 million annually, with higher per‑pupil costs for special education placements. The board also discussed unresolved residency documentation for some cyber students and the timing and effect of any appeals on state subsidy.

The board is scheduled to vote on the preliminary proposed budget at the May 11 meeting so the proposal can be posted for public inspection; the administration will present a final proposed budget on June 1 and the board plans a final adoption vote on June 8.