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McGuffey budget preview shows shrinking reserves; $6 million bond and millage increase on the table
Summary
District business manager Charlene Hoverchuk told the school board the district expects about $3.5 million in unassigned fund balance but faces a roughly $1.7 million 2026–27 deficit; a flexible $6 million bond and a move toward the full millage index are on the table to close the gap.
Charlene Hoverchuk presented the McGuffey School District’s preliminary budget outlook on March 13, saying the district is projecting about $3.5 million in unassigned fund balance at June 30, 2026 and a possible $1.7 million deficit for the 2026–27 budget year.
Hoverchuk, who reviewed revenue and expense projections, said tax collections to date have largely arrived and that the remaining revenue will come from state subsidies and small federal sources. She outlined three revenue scenarios tied to possible millage rates: the current 14.62 mills (just under $36 million in revenue), a 15-mill rate (about $36.2 million), and a full-index 15.29 mills (about $36.5 million). She said adopting the full index would reduce the projected deficit, leaving the district with an estimated $1.1–$1.2 million in fund balance after June 30, 2026.
The business manager also described a proposed, flexible $6 million bond issue included in preliminary project lists. "The projects that have been proposed are here. However, this is very flexible, very fluid," Hoverchuk said, urging continued discussion before final decisions.
Hoverchuk warned salary and benefits remain the most uncertain budget lines. Contract negotiations for support staff and an Act 93 employment agreement scheduled to expire could change the final cost of salaries and benefits. She said she was negotiating with insurers to lower costs and had reduced the total projected expenditures roughly from $39 million to $37 million through line-item review, though salaries and benefits still could move.
Board members asked whether the superintendent would recommend moving to the full index; Hoverchuk said her recommendation would be to go to the index "because it still leaves us at a deficit," adding that annual contractual salary increases make local revenue adjustments a practical consideration.
The board was reminded of the budget timeline: adopt a proposed budget no later than the May board meeting, publish notice of intent, and adopt a final budget at the June meeting to meet state submissions by July 15.
What’s next: Hoverchuk said the district will await final state subsidy notifications (including the homestead/farmstead allocation) and federal title funding amounts before finalizing the budget. The board will consider the bond and millage choices in upcoming meetings.
