The School District of Lancaster released an independent review of a recent budget projection error along with an analysis of the district’s broader financial challenges. District leaders say the report provides important clarity and will help guide next steps.
The review found the district relied too heavily on a single software projection tool without enough cross-checks against actual spending data. It also noted that while finance staff are skilled, the department is currently operating without two key positions, limiting its ability to conduct deeper analysis and respond quickly to changing conditions. The report recommends stronger internal processes, clearer coordination between departments, and regular validation of budget projections.
“The projection error did not create the district’s financial challenges, but it may have delayed action by creating the impression there was more time to respond,” said Dr. Timothy Shrom of the Pennsylvania Association of School Business Officials (PASBO), who led the review.
“This report gives us a clear and honest look at where we are,” said Superintendent Dr. Keith Miles. “We have already begun strengthening our financial processes and internal coordination, as well as reviewing the leadership and staffing model in our finance department. At the same time, we must address the larger, ongoing challenges facing our district in a thoughtful and responsible way.”
The report confirms that since the 2020–2021 school year, district spending has outpaced revenue. Like many districts, Lancaster used one-time federal ESSER funds to support programs and staffing. Those funds expired at the same time growth of the district’s local revenues slowed.
The report also notes that the district has limited ability to quickly increase revenue, as only about 25% of its budget comes from local property taxes, which are subject to state limits. While state funding has increased in recent years, future growth is uncertain.
“The path forward will require difficult but necessary decisions,” said School Board President Jennifer Eaton. “We must take responsible action now to ensure the long-term financial stability of our district and protect our ability to serve students in the years ahead.”
District leaders emphasized that addressing these challenges will require ongoing evaluation of spending, staffing, and revenue, with adjustments made each year.
The district will host a Community Budget Forum on April 7, where the report’s authors will present their findings to the Board of School Directors. At that meeting, the district will also unveil its proposed budget for the 2026–2027 school year.