Franklin Area SD finance committee sees smaller projected shortfall, flags $814,000 roof repairs and possible tax increase

The Franklin Area School District finance committee reviewed preliminary figures for the 2026–27 budget and reported the district is performing better than previously planned, but still faces a projected operating shortfall of roughly $569,000.

The district’s finance director told committee members that local revenues are expected to rise modestly — real-estate assessments about 2% and earned income roughly 4% — and that interest earnings are on target. The director said the governor’s budget proposal would add statewide basic education funding and grants that, if finalized, would increase Franklin’s state receipts by modest amounts (an estimated $63,000 from an additional $50 million in basic education funding and about $666,000 if the proposed Ready to Learn block grant is enacted). Federal funding was described as “fluid,” with current federal receipts at $848,000 for the year in progress, down from $902,000 the prior year.

The committee reviewed expenditure assumptions: total salaries are about $16 million based on an enrollment projection of 1,746 students and 163 faculty members, with average teacher increases historically near 2.77%. Administrators reported roughly a dozen retirements and resignations under consideration for planning purposes, and noted health-care cost growth had slowed to about a 2.56% increase, in part due to wellness and sick-day buyback initiatives.

Special-education funding and placements drew sustained attention. The director said the district expects to receive roughly $75,000 from the governor’s special-education increase but emphasized special-education costs continue to exceed that additional revenue; cited per-pupil costs were approximately $14,100 for regular education and over $25,000 for special education. The district reported 17 students in costly outside placements (about $35,000 per student) down from 39 the previous year, and said bringing students into newly created in-district classrooms has reduced outplacement costs.

Administrators also described program developments: funded pre-K seats were expanded from 20 to 36, with a forthcoming presentation to the McElhattan Foundation about a $200,000 investment that administrators expect will support roughly $450,000 per year in program value. Officials said the district still has about 99 outside cyber charter students costing roughly $2 million, even as cyber charter reform reduced outflows by an estimated $205,000.

On capital and maintenance, the committee was presented with several urgent facility needs. Board members reported ongoing roof leaks (including a swelling in a high-school auditorium), rotten grease traps and hundreds of feet of broken piping that likely require replacement rather than repair. The Sandy Creek roof repair was estimated at about $814,000; district staff said insurance (via Church Mutual, engaged through the district’s broker) is expected to cover the majority of the claim but that uncovered scope items of roughly $90,000 were likely to emerge once work begins. The director said the insurer has committed to review and approve documented additional damage found during remediation and that the district is verifying contractor bonding (SCS Huckestein was named as a bonded contractor to be validated).

Given capital needs, committee members discussed financing options. The directors reviewed tax-change modeling showing that a 0.25-mill increase had been illustrated and that a full 5% index increase (about 0.9 mill) would raise an estimated $550,000. Several board members said the district may need to weigh modest annual tax-index increases, capital-bonding options or reallocation of budget priorities to cover long-term building repairs while minimizing staff reductions.

Other items noted during the meeting included a planned adoption of a new six-year ELA curriculum (estimated implementation cost about $500,000 including professional development), transportation contract savings from route consolidation and locked-in fuel pricing through a regional consortium, and ongoing weekly staffing and operational planning meetings. Members also discussed a potential four-day school week as a 2027–28 cost-saving option that would need further study to assess impacts on athletics and extracurriculars.

The committee was reminded that the proposed budget must be adopted in May and the final budget by June 30; members said next steps depend on state budget outcomes and continued refinement of staffing and capital estimates. The finance committee adjourned at 6:34 p.m.