Berwick Area SD hears draft budget showing $2.9 million shortfall; consultants outline options

The Berwick Area School District board heard a draft 2026–27 budget presentation Tuesday that projects roughly $56.68 million in revenues against $59.59 million in expenses, leaving an estimated $2.9 million deficit.

School Business Consultant Jim Marabelli, who presented the draft, described it as a working document and said the administration has modeled salaries and benefits to reflect expected costs despite ongoing contract negotiations. "I'm calling this the draft budget, not quite the preliminary budget," Marabelli said, adding that the package is organized to let board members compare year-over-year variances.

Why it matters: the consultants and administration identified a handful of largely fixed cost drivers that leave limited discretionary room. Marabelli highlighted a modeled 7.9% increase in health-insurance premiums that adds about $470,000 to benefits costs and an estimated $175,000 increase in retiree-related benefits (HRA/403(b)). Special-education tuition and placements were presented as another major pressure, with a cited $600,000 increase and examples of very high-cost placements — "Our tuition is $140,000 for most students" at programs such as Granite Academy, Marabelli said.

Other expense pressures named in the presentation included roughly $150,000 higher maintenance/utility costs tied to energy price increases and a $140,000 rise in debt service associated with a local HVAC project; retirement costs were noted up about $70,000.

On the revenue side, Marabelli said the current draft does not assume a tax increase. He said a full allowable tax increase of 4.8% would generate about $850,000, and he noted the governor’s budget proposal could add roughly $848,000 if enacted — but he cautioned state figures remain uncertain. He also warned that a one-time reassessment repayment related to Warwick Hospital (presented as about $322,000 for FY26–27) could offset some of the district’s recent positive variance in real-estate collections.

Taken together, the administration presented revenues of $56.68 million versus expenses of $59.59 million and characterized the result as a draft deficit of approximately $2.9 million. Marabelli told the board he will present options in coming weeks to reduce the gap and cautioned against tapping fund balance to cover recurring costs: "Do not let $2.9 turn into...do nothing and then next year that number is 4 million," he said.

Facilities note: the superintendent told the board the district will submit a facilities matching grant for portions of a roof project; the lowest contractor quote noted in the meeting was $700,000 and the administration said it would seek 75% reimbursement (leaving an estimated district share of about $175,000), with insurance expected to cover part of the remainder.

Votes at a glance: the board approved routine motions including minutes from Feb. 17, budget transfers and bills (roll-call recorded as 'Yes' for listed members), several consent items (G1/G2, A1, ECY), grouped finance items and an expedited item (EY), and personnel items P1–P14. The personnel motion passed by voice vote but at least one member registered a specific 'no' on a personnel subitem (referenced in the transcript as objecting to item P10). The motions were carried by the board as recorded in the meeting minutes.

What's next: administration and the consultant will return with options to close the gap; the board has scheduled a work session and the next regular meeting to continue budget deliberations.