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South Fayette Township SD projects $3.8 million operating deficit; board to set millage June 16
Summary
Mister Neely, the district budget presenter, told the board the revised 2026–27 general fund budget shows a $6,627,339 deficit after recent adjustments and his current projection anticipates approximately a $3,800,000 operating deficit for this school year. The board is scheduled to vote on the final budget and set the millage at its June 16 meeting.
Mister Neely, presenting on behalf of the district business office, updated the board on the South Fayette Township School District’s general fund budget and projections for 2026–27.
Neely said the district adjusted recent budget figures to show approximately $248,000 in expense reductions and $43,000 in added revenue, leaving a revised budget deficit of $6,627,339. "My most recent projection anticipates approximately a $3,800,000 deficit for this school year," he said.
The presenter reviewed how the district’s budgets and fund balance have evolved over recent years. He noted the district maintained a millage rate of 26.7 mills from 2016–17 through 2023–24, then increased the rate to 27.7 mills in June 2025 as part of the current fiscal plan that originally included a $5,880,000 deficit.
Neely outlined several persistent cost drivers, including rising special education needs (86 more identified students since September 2022), a 16% average annual increase among English learners over the period cited, utility and energy costs (an average 16.8% increase noted in electric costs), higher bus purchase prices (about $50,000 increase over four years), health care costs (about a 10.1% annual increase), and property and liability insurance (averaging a 13.5% annual increase). He said special education accounts alone added roughly $2,400,000 since the 2022–23 budget.
Looking ahead to 2026–27, Neely presented updated budget figures that project a year-end fund balance of about $20,645,000, assuming a planned transfer of $1,000,000 into the capital reserve fund on the recommendation of the district’s financial advisers, PFM. He said the million-dollar transfer would appear as an expense in the general fund but remain in a separate account until needed for capital projects.
Neely closed by saying budget work is ongoing, with meetings scheduled with schools and departments, and reminded the board that the final budget and the millage-setting vote are planned for the June 16, 2026 board meeting.
