The school board approved the proposed final budget for the 2025–2026 school year. This has been a difficult budget cycle, and I want to share a brief overview of the factors contributing to our current situation.
- Structural Deficit: Our expenses (salaries, benefits, services) grow faster than our revenues. With the end of ARP-ESSER funds, we face a $16 million structural deficit.
- Changing Student Needs: While enrollment is declining, we’re seeing more students requiring special education and ELL support. These services are more costly, and state support has not kept pace.
- Healthcare Costs: As a self-funded district, we anticipate $36.2 million in healthcare claims next year, adding $4.5 million to our deficit.
- State Funding: While we expect an additional $3 million from the state under the school funding reform, it falls short of addressing our funding gap.
- Facilities & Debt: We have $248 million in outstanding debt for essential building upgrades, with debt payments set to rise through 2029.
- Local Revenue Limits: With limited taxable land and a large portion of tax-exempt property, the board approved a 4.25% tax increase to raise $3.6 million.
To close the gap, over $17 million in budget adjustments were made, including increased health insurance premiums, a freeze on overnight PD travel, reduction in some vacant teaching positions, nine LTL positions, and a partial hiring freeze.
We recognize the emotional weight of these changes and the impact on staff. Please know these decisions were not made lightly, and with this budget approved, we do not anticipate further staff reductions for 2025–2026. Despite these challenges, we remain committed to supporting our students and one another. Thank you for your continued dedication during this time.
The Proposed Final Budget for the General Fund of the School District of Lancaster for the 2025-2026 fiscal year in its most recent form is available at the link below and will be presented for adoption as a Final Budget at a School Board meeting on June 24, 2024. The budget may be amended before final adoption.