Mount Pleasant Area SD hears preliminary 2026–27 budget showing $1.257 million shortfall

The Mount Pleasant Area SD board heard a preliminary 2026–27 budget presentation April 1 that shows $39,642,458 in projected revenues against $40,900,429 in projected expenditures, producing a preliminary deficit of $1.257 million, budget presenter Mr. Deritza told the board.

In his presentation, Mr. Deritza said the draft contains no proposed tax increase and relies on conservative assumptions: a 1.74% increase in state revenue estimates and modest local assessment growth. “Currently we have total revenues of 39,642,458 [and] total expenditures of $40,900,429 which gives us a deficit of $1.257 million,” he said.

The nut graf: the preliminary gap, combined with rising health-insurance and special-education costs and debt-service increases from a 2026 general obligation bond issue, frames the district’s choices for the coming budget cycle and the board’s May and June action deadlines.

Details and drivers: Mr. Deritza outlined revenue and expense highlights the board will revisit in May. Local revenue is essentially flat with no tax increase proposed; the district’s Act 1 index for 2026–27 was cited at 4.6%, and the board said the district’s current millage rate is 94.82 mills. Using the district’s examples, a one-mill increase would add about $157,000 in revenue; two or three mills would proportionally reduce the preliminary deficit. Mr. Deritza emphasized he was not advocating a millage increase, but said the scenarios showed how millage choices would affect the shortfall.

The presentation also identified specific funding sources and planned uses: PCCD grant funds (budgeted at $61,431) to support part-time police wages districtwide and to purchase an Open Gate weapons-detection system; Title I, II and IV allocations budgeted at 2025–26 levels pending state/federal notices; and federal draw-downs to offset special-education costs.

Costs that increase pressure on the budget include a projected 8% rise in health-insurance costs (the district’s health consortium set a not-to-exceed number at 8%), a projected increase in special-education tuition tied to potential outplacements, and continued cyber-charter tuition (budgeted at $1,921,000 based on new state rates). Salaries, wages and benefits remain the largest single expense category, comprising roughly 60% of total budgeted expenditures.

Staffing and personnel moves were noted: an early-retirement incentive produced 11 retirees this year with savings that vary by position; the budget includes 13 vacant positions and assumes conservative replacement costs (family benefits level). The district’s PASERS employer contribution was reported at 33.59% for 2026–27 and is modeled with a net pension cost after reimbursement of $2,110,000.

Debt and reserves: debt service related to the new 2026 bond issue increases debt-service expense (an increase of about $496,782 over prior budgeted levels) but remains below a commonly cited 10%-of-budget threshold at about 8.49%. The fund-balance projection shows audited balances near $5.9 million for recent years; under the preliminary deficit, the district’s projected fund balance for 2026–27 would be approximately $4.1 million (near a 10% level), with a minimum desired threshold stated at 5%.

Timeline and next steps: Mr. Deritza said the district will present a proposed-final budget at the May 7 meeting and must adopt the final budget by May 31; the board plans to vote on a final budget on June 24. He cautioned that some figures (state subsidy, Title allocations, IU special-education and CWCTC numbers) may change when official state and partner numbers are released in May.

Board members asked clarifying questions about line-item definitions (for example, what the ‘other objects’ category covers). Mr. Deritza said these are largely dues, memberships, and activity fees (conference fees, tournaments, activity dues). He also confirmed that cyber tuition has been recalculated under new state rates producing modest savings compared with older calculations.

What’s next: the presentation was informational; no budget vote was taken April 1. The board will revisit updated figures in May and proceed toward the statutory adoption deadlines.