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Franklin Area SD projects $2 million shortfall in proposed 2026–27 budget; board weighs tax options
Summary
The Franklin Area School District business manager presented a proposed 2026–27 budget that currently shows an estimated $2 million deficit, no tax increase in the draft, and options including raising millage to the index to partially close the gap.
At its May 11 meeting, the Franklin Area School District board heard a presentation of the proposed 2026–27 general fund budget that, in its current form, projects about a $2 million shortfall.
Business manager Miss Eden, who presented the plan, said the draft holds the millage rate steady and does not include a tax increase. "I'm predicting a loss of two million," Eden said while walking the board through revenue and expenditure estimates.
The presentation outlined revenue assumptions that include an estimated $1 million increase in local revenue, a roughly $666,000 increase in the basic education subsidy, and about $64,000 more in special education funding; federal grant estimates were increased by roughly $28,000 but were still pending final confirmation. The district expects to continue receiving a school safety grant of about $133,000 that supports the police officers assigned to district schools.
On the expenditure side, Eden told board members the district is budgeting to purchase a new English language arts curriculum at an estimated $500,000 and is forecasting modest increases in contracted transportation costs (about 4%). She also said employer retirement contribution rates are projected to decrease slightly (from 34% to about 33.59%) and that health-care costs are being held flat in the draft after a 19% increase the prior year.
Board members discussed whether to seek revenue by raising the millage to the state-prescribed index. Administrators and members noted that the full index adjustment would bring in roughly $500,000–$550,000, which would not eliminate the projected deficit. Several members said they would like public input before pursuing a tax increase; others noted timing and political sensitivity around local tax votes.
Miss Eden emphasized the draft remains a work in progress: state and federal figures were expected to be finalized in mid-May and the board scheduled additional meetings to refine the plan before any final action. The board must adopt a budget before the end of the fiscal year; board discussion indicated they expect further revisions between the presentation and the eventual vote.
