Though state funding is uncertain, preliminary budget figures appear to be leading Upper Adams School Board toward not raising taxes.
“It doesn’t look like we’re anywhere near entertaining a tax increase,” board member Gerald Walmer said Tuesday after a presentation from director of business operations Shelley Hobbs.
As of May 5, Hobbs’ proposed fiscal year 2025 budget outlined approximately $34.14 million in revenue and $36.42 million in expenditures. This would leave a variance of about $2.28 million.
That variance includes about $787,000 for the Cumberland Perry Area Career & Technical Center renovations, expected to be pulled from the district’s assigned fund. School districts that send students to Cumberland Perry are contributing toward the center’s renovations.
The $2.28 million variance also includes $322,000 for a faculty computer refresh at Upper Adams, which can be covered by the assigned technology fund balance.
After factoring in Cumberland Perry and the computer refresh, Hobbs said that would leave the board with a variance of about $1.1 million for the fiscal year 2025 budget. To balance the budget, the district may pull from its unassigned fund balance.
The unassigned fund balance, akin to a rainy day fund, is there for unexpected expenses and can also be used to help balance the budget. The district is required by the state to maintain a certain amount of money in the unassigned fund balance, but the amount cannot exceed 8% of the total budget.
Hobbs predicts the unassigned fund balance will have more than enough to cover the projected $1.1 million variance. In fact, she expects the unassigned fund to be in excess of its 8% limit, meaning the district will have to draw on this fund or move money to the assigned fund.
In her presentation, Hobbs stressed that the proposed budget may change as several funding factors are still unknown. The state budget, like the school districts, has a deadline of June 30, so it is not known how much funding Upper Adams will receive.
Looking over the proposed budget, Walmer said Hobbs made “prudent” projections that were “light on the revenue side, heavy on the expense side.”
Board members gave a general consensus for Hobbs to continue drafting the budget without a tax increase. Heather Young-Cover was absent.
The preliminary fiscal year 2025 budget will be presented at the May 21 board meeting for a vote. The final budget may not be higher than the preliminary budget, but it may be lower. The final budget adoption is scheduled for June 18.
Mary Grace Kauffman, freelance reporter, worked six years as a full-time reporter for newspapers in Pennsylvania and Maryland. She has covered topics including business, crime, education, government and features. Mary Grace has a bachelor's degree in communication/journalism from Shippensburg University. She resides in Adams County.