South Fayette School Board adopts 2026–27 budget, uses $6.14 million from fund balance

The South Fayette Township School District board voted to adopt its final 2026–27 general fund budget at a 28.9465 millage rate and to borrow $6,138,036 from the district’s fund balance to cover a projected deficit.

Director of finance Ryan Neely, who presented the budget, said the district has reduced expenditures by "just over $750,000 district wide" since the proposed-final presentation and now projects a $6,138,036 deficit for 2026–27. He said salary and benefits account for roughly $60.8 million — about 70.3% of the budget — and cited an 8.3% premium increase from the Allegheny County Health Insurance Consortium and state-set PSERS rates as inflationary pressures.

Neely told the board the single largest long-term driver of the district’s budget increase is debt service for campus construction and planned bond issuances. "The bond in red is the one that we just issued earlier this year," he said while reviewing multiyear bond-cost projections that, he said, could add about 3.6 mills to the general fund budget by the 2029–30 school year.

Superintendent Dr. Miller cautioned that certain student services are legally required and can be costly. "That alternative placement may be a placement that costs 30 to $40,000 per year in addition to the transportation," Dr. Miller said, describing the resource intensity of some special-education placements and related staffing needs.

Board members pressed for clarity about the outlook and for regular monitoring. One member asked when the auditors’ final numbers will be available; Neely said the district should have an internal trial balance by August and expect auditors’ adjustments by early October. Another asked for a simple quarterly actual-vs.-projected report; Neely agreed to provide that going forward.

Several board members expressed concern about continuing to rely on fund balance to close year-to-year gaps. In the course of debate, trustees discussed the trade-offs if the board declined to use the Act 1 index: Neely and Dr. Miller said that without an increase the district would likely need to consider staffing and program reductions because personnel costs are the largest category of expenditures.

At the meeting the chair read the final numbers: revenue of $80,400,408 and expenditures of $86,538,444, with the district borrowing $6,138,036 from fund balance to make up the difference. A motion to adopt the budget, moved by Esther and seconded by Mike, passed on a roll-call vote with all members voting yes.

The board also approved consent agenda items, a package of business-office motions, 15 personnel actions (including the hiring of Abigail Russell as intermediate school assistant principal), one education item and one construction item. The meeting concluded with the appointment confirmations and a brief welcome to newly appointed staff.

Why it matters: Officials said the budget’s structural shortfall is primarily tied to construction-related debt service and rising personnel-related costs. The board’s decision to adopt the full Act 1 index and use fund balance provides short-term fiscal relief but staff told trustees they will pursue further cost reductions, explore revenue opportunities and provide regular quarterly reporting to the board.

What’s next: Staff will provide more detailed internal projections over the summer, present a trial balance before auditors’ final adjustments, and return with recommended actions for long-range financial planning to address continuing deficits.