Tunkhannock Area SD board approves zero-mill proposed draft budget, projects $5.03 million shortfall

The Tunkhannock Area School District board on Monday approved a proposed draft budget for 2026–27 that keeps the tax rate at zero mills while projecting a $5,034,011 shortfall the district plans to cover from its fund balance.

Superintendent remarks and a district presentation outlined the preliminary numbers before the board voted. The draft shows roughly $58 million in expenses against about $53 million in projected revenues, with wages accounting for $22,669,000 and benefits just under $17 million. The presenter noted about 79% of the budget is fixed spending the district cannot easily reduce.

The superintendent told the board he will not present a budget that includes a tax increase at this stage and emphasized the district’s “healthy” general fund balance, which the presentation estimated at about $17.8 million at the start of the fiscal year. The board was told the district expects to finish 2025–26 with an underspend of roughly $700,000.

Board members and staff highlighted three cost drivers in the draft: rising health insurance costs (a projected 12% increase), contractual salary and state retirement cost increases, and higher transportation and utilities expenses. The presentation also called out several capital priorities draft-funded next year, including a welding shop renovation, culinary program renovations, a new pool timing system (about $20,000) and roofing or boiler work at aging buildings.

The superintendent and presenter said the district expects only a minimal increase in state basic education funding under the governor’s proposal — about 0.5%, or roughly $59,000 — and noted that federal revenues are projected to remain flat. Board members cautioned that even with a maximum allowable local tax increase under the Act 1 index, local revenue alone would not close the gap.

The board approved the zero-mill proposed draft budget on a roll-call vote with all present members voting yes. The vote advances a required procedural step: state law and school code require a proposed draft budget be presented before the final budget is adopted. The final budget will be considered at the board’s June meeting with a June 30 statutory deadline for adoption.

Votes at a glance - Proposed draft 2026–27 budget (zero mills): Approved by roll call; yes — Mr. Burke, Mrs. Eckerd, Mr. Farr, Mrs. Gobel, Mr. Greenly, Dr. Osherick, Mr. Franco, Mrs. Arnold; outcome: approved. (topicintro SEG 454; topfinish SEG 960) - Minutes and business/finance report: Approved by roll call; outcome: approved. (topicintro SEG 208; topfinish SEG 226) - Personnel report (including retirements for Barb Sick, Colleen Miss Levy, Deanna Rosengrant): Approved by roll call; outcome: approved. (topicintro SEG 227; topfinish SEG 340) - 2026–29 comprehensive plan: Approved by roll call; outcome: approved. (topicintro SEG 377; topfinish SEG 411) - Bus and van contracts: Approved by roll call; outcome: approved. (topicintro SEG 420; topfinish SEG 430) - Overnight/out-of-state field trips (PMEA All-State and SkillsUSA nationals): Approved by roll call; outcome: approved. (topicintro SEG 431; topfinish SEG 447) - Site marketing agreement with Diamond Towers LLC (cell connectivity assessment): Approved by roll call; outcome: approved. (topicintro SEG 961; topfinish SEG 989) - 2026–27 academic calendar: Approved by roll call; outcome: approved. (topicintro SEG 990; topfinish SEG 1064)

What happens next The draft budget approved Monday is a required step; the board will revisit a revised draft and consider final adoption in June. Officials said they expect to use part of the district’s fund balance to close the projected deficit while pursuing attrition and other reductions to avoid cutting student programming.