Octorara Area SD board approves proposed final general fund budget 2026–27 with 7–0 roll call

The Octorara Area School District Board of Directors voted to approve the resolution adopting the proposed final general fund budget for the 2026–27 school year after a roll call vote that recorded seven votes in favor and two members absent.

Business manager Michael presented the proposed revenue and expenditure figures: local revenues of about $42,583,772, state revenues of about $19,266,595 and federal resources of about $1,300,000 for total revenues near $63,000,000. Michael said proposed budgeted expenditures total about $68,000,000, producing a starting deficit near $5,000,000.

Michael told the board that key cost drivers include employee salaries (about $23.7 million), employee benefits (about $14.6 million), a sizable insurance increase (budgeted at about $11.6 million) and charter school tuition and out‑of‑district special‑education placements. He highlighted district data from PDE showing charter tuition payments well above some providers' reported costs and said charter tuition expense has doubled in recent years, creating a structural pressure the district cannot directly control.

Board members discussed mitigation options Michael outlined, including refinancing bond debt to reduce annual debt service (estimated savings roughly $600,000), using suspense account reserves, and trimming professional services and equipment lines. Michael projected an ending fund balance for FY 2024–25 of approximately $14.6 million, but noted the closeout remains in process and numbers carry uncertainty.

The board approved the budget resolution by roll call (7 yes, 2 absent). The district will continue quarterly and monthly monitoring and return with refinements as required by state reporting and to manage the projected deficit.