South Fayette board hears budget update showing $6.55 million projected deficit; final vote set for June 16

Mr. Newley, the district business office presenter, told the board the district is projecting a $6,550,000 deficit for the 2026–27 general fund and will present a final budget and millage rate for a board vote at the June 16 meeting.

"We currently are showing, after a few adjustments ... a deficit of $6,550,000 in next year's budget," Mr. Newley said, and described plans to provide weekly updates to the board leading up to the vote.

He summarized the budget's structure and revenue mix: about 70% of the budget goes to salaries and benefits, and when debt service, transfers and contingency are included those categories account for roughly 84% of spending. On the revenue side, he said real-estate taxes account for about 58% of the district's revenue, local sources about 72% when other local revenue is included, state revenue about 25%, and federal and other revenue about 3%.

Mr. Newley presented illustrative millage scenarios holding the expenditure budget steady: the district's current modeling shows the Act 1 index full-allowed millage at 28.9465 mills; he also showed comparisons to the existing millage of 27.7 and hypothetical increases of 0.5 and 1.0 mill to illustrate potential revenue effects.

He said the district continues internal reviews and meetings with schools and departments to identify further adjustments and that his office will circulate weekly budget updates before the June 16 meeting.

The board did not take a final vote on the budget at this meeting; Mr. Newley's presentation closed with an estimate of a fund-balance position for the end of the next year at about $20,750,000, which includes planned transfers to capital reserves to support ongoing construction projects.