Montoursville Area schools project $1.5M shortfall as cyber-charter and specialized-transport costs climb

The Montoursville Area School Board on April 9 received a detailed budget presentation showing a proposed 6.14% increase for 2024–25 and an estimated $1.5 million deficit if the district keeps the current millage.

Randy (business manager) told the board that cyber-charter costs have risen sharply and, if current enrollment holds, would amount to about $1,100,000 next year. “If everything remains constant next year, we have 53 regular ed students and 22 special ed students in cyber charters,” Randy said, adding that the line has increased the budget by roughly a half-million dollars compared with earlier projections.

Board members were also told to expect a roughly $375,000 increase in specialized transportation and outside-placement costs. Randy said employee benefits are up about 3.84% and health-care premiums increased about 8.5%. Chromebook replacement costs were added to the property/supplies budgets now that ESSER funds are no longer available.

The presentation included millage scenarios. Randy said a no-tax-increase plan would leave the district using roughly $1.5 million of fund balance (or $2.2 million including the budgetary reserve). He outlined alternatives, such as a 0.4-mill increase to support an armed-security program estimated to cost about $335,000 a year and a multi-year millage that would cover borrowing for building projects.

Board members discussed pending state legislation that would cap cyber-charter payments at $8,000 per student. One member noted the bill had been pared down to that cap and said passage could reduce the district’s payments by about $250,000. At least one director and staff member urged the board to pursue an in-district cyber option and to extend a contracted position to help bring students back from cyber charters; board members said four returned students could cover the cost of such a position and reduce outflowing tuition.

Several trustees questioned assumptions and asked for sensitivity scenarios. Randy said certain figures (insurance quotes, intermediate-unit contract numbers) remain estimates and will be updated as final numbers arrive. He also noted that some 500-series costs (transportation, outside placements) are largely outside local control because state formulas and placement needs drive them.

The board did not adopt a final tax rate at the meeting. The business manager said the budget would be revisited at the April work session and that a proposed adoption may occur at the May meeting. The presentation materials and the board’s proposed millage scenarios will be included in those upcoming discussions.

What’s next: the district will continue budget workshops; administrators said they will return to the board with updated bids, insurance quotes and any changes tied to state budget actions.