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Schuylkill Valley finance director outlines options to close $1.05 million deficit, including up to 4.28% millage increase
Summary
At the March 24 meeting Kristen Wallace, the district director of finance, presented a preliminary 2026–27 budget showing a projected deficit of about $1.05 million and outlined four millage-rate options that would raise between $975,000 and $1.46 million, with average household impacts from about $131 to $208 per year.
Kristen Wallace, the district’s director of finance, presented the Schuylkill Valley School District’s preliminary 2026–27 budget and described a projected shortfall of roughly $1.05 million.
Wallace said the district’s revenue mix remains heavily local, with "just about 70% of our total revenue comes from a local tax" and about 26% from state funding. She noted the district used a taxable assessment of roughly $1.1 billion and modeled a conservative 0.5% increase for 2026–27. Wallace said the district is maintaining the current millage rate of 27.82 and assumed a 97.5% collection rate in its projections.
The director called out specific pressures on the budget: staffing and benefits comprise roughly 70% of expenditures; special education and out-of-district placement costs have increased; charter school costs contributed to a $350,000 rise since last year; and the Schuylkill Valley Education Center (SVEC) now appears in the district budget with a projected net cost of $630,000 because the county is not reimbursing expected amounts.
"The last time I came to you, we had a current deficit of about $908,000. It did now since change to just over a million 50,000, so 1.05 million," Wallace told the board.
To close the gap, Wallace outlined four millage-increase options and the revenue and household impacts she estimates for each:
- 0.75 mills (≈2.7%): would generate about $975,000 and would roughly clear the deficit; estimated average annual increase per household: $131.25. - 0.85 mills (≈3.06%): would generate about $1.08 million; estimated average annual increase per household: $148.75. - 1.00 mill (≈3.59%): would generate about $1.25 million and leave a remaining surplus of roughly $200,000; estimated average annual increase per household: $175. - 1.19 mills (≈4.28%): would generate about $1.46 million and leave a remaining surplus of roughly $410,000; estimated average annual increase per household: $208.25. Wallace noted the 1.19-mill option approaches the district’s Act 1 index cap, which limits increases "just under 4.3%."
Wallace also reported a flattening of the local tax base: year-over-year real-estate growth for 2026 is only about 0.72%, the smallest in the last five to ten years, which reduces the district’s automatic revenue growth.
The presentation included expenditure detail: an $850,000 increase in total salaries, wages and benefits over the prior year's budget and an approximate 10% increase through the Berks County School District Health Trust contribution; charter-school tuition and special education are cited as continuing upward pressures.
Board discussion at the meeting did not settle on a millage choice. Wallace said the board typically finalizes its budget in May–June and that state funding remains an unknown until the state approves its budget. The board will consider the millage options and related reserve adjustments in coming workshops and is scheduled to vote on budget items in the statutory May–June timeframe.
