Tax hikes, program cuts, increased class sizes and pulling from funding reserves are all on the table to help balance Fox Chapel Area School District’s proposed 2025-26 budget.
“Everything is still on the table right now,” district Business Manager Kimberly Pawlishak said following a preliminary budget presentation at the school board’s committee of the whole meeting on April 15.
Presentation documents showed projected revenues at about $118.8 million and expenses at $123 million — a gap of about $4.2 million.
The spending includes $1.5 million earmarked for unexpected costs such as emergency repairs.
A specific tax hike has not yet been recommended. The current millage rate is 21.5128 mills.
One mill generates about $3.7 million in revenue for the district.
The district raised taxes 3.75% as part of this school year’s budget.
Pawlishak said there are a lot of unknowns, among them state budget appropriations, property tax reduction allocations, additional grant opportunities and federal funding.
The presentation offered a general look into next school year’s projected finances, including how real estate taxes make up nearly 63% of total revenues, little more than 10% coming from Act 511 taxes, including the earned income and local services tax. State income makes up about 21% of total revenues.
Federal funds were listed at about $1.3 million, which is less than 1% of total revenues.
Personnel costs make up about 70% of the total budget. Other mandated spending, such as student transportation, utilities and professional services, makes up a little more than 14%.
Non-mandated costs were listed at 6.6% and debt service makes up about 4.7% of expenditures.
As far as insurances and benefits, medical premiums are projected to increase 5.7% and dental/vision premiums are projected to rise by 3%.
Figures used in the presentation were as of March 25.
“As more information comes out, these figures may change,” Pawlishak said.
The business manager said after the meeting, she felt confident in having the most accurate projections at the time.
“This is the most that we’ve actually had known and finalized by the April presentation than in previous years,” Pawlishak said. “Federal funding is just one of those unknowns for all of us, every district. We’re budgeting at a slight decrease (in federal funds) from the current year.”
A host of options, including pulling about $2.6 million from district reserves, not filling positions vacated due to retirement or resignation and putting off some capital projects, were briefly discussed.
The board did not take any action on the preliminary budget.
According to the presentation, there are more than $30 million in anticipated projects over the next 10 years, with $15 million anticipated over the next five years.
Projects listed included high school HVAC and water/sewer upgrades, stadium lights, boilers, rooftop upgrades, Fairview Elementary windows and classroom HVAC upgrades and O’Hara Elementary boilers.
The budget is expected to be discussed again at the board’s May 5 meeting and passed June 9.
The preliminary budget presentation is available on the district’s website via its “agendas, attachments, other documents, and broadcasts” section of the School Board tab.
People can also watch it on the district’s YouTube page. It begins at about the 1:52 mark of the April 14 meeting video.