School board adopts 2026–27 budget at Act 1 index after debate on cyber-charter costs

The Bermudian Springs School District board voted 8–1 to adopt the district’s final 2026–27 general fund budget under Option A, which follows the state-set Act 1 index (4.7%), completing the required two-step adoption of expenditures and the millage rate.

In presentations leading up to the vote, district staff reviewed revenues and expenditures: total expenditures were presented as just under $41 million, with personnel and benefits accounting for about 65% of that amount. Staff highlighted that local revenue is expected to fund roughly 60% of the budget, state funding about 39.5%, and federal funding near 1%. A major point of concern raised during the presentation was the district’s cyber-charter tuition expense, shown at an estimated $2.3 million for the year; staff said the district has limited ability to control that cost and is pursuing measures to contain it.

The administration presented three millage/budget options. Option A (the Act 1 index) was described as the only option that, under current projections, leaves a positive year-one ending fund balance (approximately $283,000). Option B and Option C would reduce immediate revenue and increase fund-balance usage (staff presented projected revenue losses of about $181,000 and $362,000 respectively for those alternatives). Staff cautioned that projections beyond year two are uncertain because state funding and other variables can change.

Board members who spoke in favor of Option A pointed to near-term infrastructure needs, the potential cost of ACTI property and building work coming later in the agenda, and the district’s long-running underfunding concerns as reasons to preserve reserves. After discussion, members conducted the required two roll-call votes: first on the expenditures and revenue totals and then on the millage rate tied to Option A. Both votes passed 8–1.

The board’s adoption finalizes the district’s budget for submission and sets the millage tied to Option A. The administration noted that this completes the two required votes and that the district will continue monitoring revenues, cyber-charter expenses, and upcoming capital needs through the year.

The board adjourned without additional amendments to the adopted budget and will proceed with implementation and any required reporting to the state.