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Colonial Intermediate Unit 20 proposes $4.7 million general operating budget, cites health‑benefit increases
Summary
Colonial Intermediate Unit 20 presented a proposed 2026–27 general operating budget of $4,697,319, a 5.99% increase driven largely by medical and benefit cost increases; the IU recommends a 3.5% district withholding increase and will present the budget for final approval at the March 23 board meeting.
Colonial Intermediate Unit 20 recommended a general operating budget of $4,697,319 for fiscal year 2026–27, a 5.99% increase over the prior year, presenters told the Bethlehem-area school district finance committee on March 16.
"We recommend a general operating budget of $4,697,319," John Wallage, assistant to the executive director for management services, said during the presentation. Wallage said the IU’s recommended district withholding increase is 3.5%, the mandated payment districts make to support the IU’s general operating costs.
Wallage and Dr. Jackie Bartekch, assistant to the executive director overseeing student services, told committee members that salary and benefits remain the largest cost drivers in the GOB. Wallage said actuary guidance and recent experience on health claims have raised medical-related costs: he cited a medical increase recommended by the actuary and described health‑benefit line items that contributed to the rise.
"Salaries were in negotiations currently ... we did budget a 3.2% increase for our Act 93 employees," Wallage said. He also described benefit increases and listed medical and prescription increases included in the budget. The presenters characterized the health‑benefit experience as a principal driver of the proposed increase.
Bartekch outlined CIU20 services that the GOB supports, including early intervention for children ages three through five, professional learning, and a school‑based partial hospitalization program (PHP) licensed by the Pennsylvania Department of Human Services. She said the IU typically serves about 2,500 preschool‑age students in a year and noted the PHP operates roughly 20 classrooms serving 327 students in Monroe and Northampton counties.
The presentation included a department-level expense breakdown: Educational Support Services (about $2.7 million), Curriculum (about $768,000), Human Resources (about $728,000) and IMS/educational technology (about $435,000). The presenters said they expect retiree/retirement reimbursements and other receipts to offset some costs, and they used a conservative 2.5% interest assumption in projections.
Wallage explained the approval timeline: the IU board and district superintendents already reviewed the proposal; staff will present the budget to districts through April with final IU approval planned in April and submissions due May 1. The committee noted the GOB will appear on the district’s March 23 voting agenda for formal action.
The committee did not take a vote on March 16; the IU presentation concluded with an invitation to review a highlight video and with scheduled follow-up during the March 23 regular board meeting.
