Mt Lebanon SD previews 2024–25 budget after administrators report roughly $1.9M 2023–24 overrun

On March 18, 2024, Mt Lebanon School District administrators told the school board the district projects to be roughly $1.9 million over its 2023–24 budget and presented a preliminary 2024–25 budget that would raise spending for textbooks, insurance, salaries, tuition and transportation while asking the board to consider lowering the district's fund-balance requirement.

Dr. Friese, who led the presentation, said administrators "are projected to be approximately $1,900,000 over the budgeted amount" for 2023–24 and walked the board through specific cost drivers and the administration's efforts to limit spending. Finance consultant Pete Camarda told the board revenue collections year to date are close to estimates and that the draft 2024–25 revenue picture incorporates an assumed Act 1 index increase.

Why it matters: the district's audited fund balance for 2022–23 was $4.6 million; administrators project the estimated final 2023–24 fund balance will be about $3.2 million. Dr. Friese said the board will consider changes to board policy DFA (use of surplus funds) in April to address the lower fund balance as the budget season progresses.

Budget drivers and numbers: administrators identified multiple areas of underfunding and projected increases for next year. Dr. Friese listed the main items she said are driving the change from the current year to next:
- Salaries underfunded by about $1.4 million (staffing and contractual steps);
- Legal fees underfunded by about $200,000;
- Dues and fees underfunded by about $150,000;
- Tuition costs described as underfunded by approximately $2,000,000 (Dr. Friese said this is $2.0 million more than this year's budget: "the budget for this school year was 1.7... based upon our projections, it is tracking at 3.7");
- A 7% estimated increase in insurance and related benefits, which the presentation estimated at about $4.1 million;
- Contractual salary increases of roughly $2.8 million.

Textbooks and technology: the preliminary budget includes $976,000 for K–5 textbooks and resources and $183,000 for grades 6–12 text materials (including sixth-grade science and math and AP U.S. history). The proposal does not include capital projects beyond scheduled classroom device replacements for first-, second- and sixth-grade classes.

Transportation and contract savings: the district is proposing a revised transportation contract and route consolidation intended to reduce costs and increase vehicle occupancy. Dr. Friese said efforts by staff reduced an original transportation bid of more than $3.0 million to a negotiated figure of $1,680,000 and that the current draft adds about $259,000 over the adopted 2023–24 line for contracted services; the contract still requires board approval. On route changes, Dr. Friese said the plan assumes approval next month and would consolidate low-occupancy routes so more students share vehicles.

Controls and process: to limit this year's spending, the administration introduced multilayer invoice and purchase-order approvals, required approvals for budget transfers, and issued a February stop-spending memo limiting purchases to necessary items. The 2024–25 budget was prepared through a more rigorous, collaborative 0-based process: budget managers (teachers, principals, directors) received three years of actuals, ranked priorities and met with administrators to justify requests.

Next steps and timeline: the administration will continue to refine the draft budget and to meet with board members individually through April 4. The schedule presented: a public budget forum and board discussion on April 8; a proposed final budget adoption on April 15; continued review on May 13; and a target to finalize the 2024–25 budget on May 20, 2024. The board will also consider adjusting policy DFA (use of surplus funds) in April to address the fund-balance requirement.

No formal votes were taken at the March 18 review; the presentation was a preliminary briefing and the administration said it will return with recommended actions and the proposed final budget on the dates listed above.