Steelton-Highspire board approves proposed 2026–27 budget for 30‑day review; hears $1M shortfall and recovery plan

The Steelton-Highspire School District board voted to approve the administration’s proposed final 2026–27 general fund budget on a motion and second, moving the plan into the mandatory 30‑day review period before final adoption at the district’s June regular meeting. The roll-call vote recorded a majority of Aye votes and one No; the motion carried.

The approval came alongside several personnel and contract votes. The board approved the personnel reports and a SHEA memorandum agreement, approved an agreement with Laurel Life Services for pupil services in 2026–27 (the administration said the contract funds two therapists and related staff training at roughly $207,000), approved an agreement with the Capital Area Intermediate Unit for special-education services, and approved long-distance field trips listed at over 50 miles. A proposed agreement with Iris Healthcare Staffing Agency was moved and then tabled to the next meeting.

Why it matters: District leadership and the recovery team told members the proposed budget is required to be posted 30 days before final adoption under state law, but it remains imperfect. “This budget you just approved still has a roughly $1,000,000 deficit in the next 5 weeks,” Mister Mathias told the board, urging immediate follow-up to close the gap and higher discipline in spending. Mathias said the district cannot continue to rely on borrowing to bridge operating shortfalls and outlined possible actions, including abandoning certain contracts under “section 642a of the school code.”

Mathias highlighted a few concrete levers affecting the budget. He said the district’s recent meeting with its health‑care broker suggests the previously estimated 12% premium increase will likely come in closer to about 7%, which he estimated could reduce the budget pressure by roughly $240,000. He also flagged special‑education costs and out‑of‑district placements as a key driver of spending and praised residency‑check work led by Samantha Neidlinger for removing ineligible enrollments from the rolls.

The board took at least one immediate procedural action on contracts: after discussion, a motion to table the proposed Iris Healthcare Staffing Agency agreement was approved so staff can resolve outstanding questions. The board approved the Laurel Life Services contract for the 2026–27 school year; administration described that contract as funding two therapists and training staff on behavior supports for special‑education students.

Quotes and context: Mathias framed the recovery work as urgent but guarded against proposals that would harm students: “I will not hurt kids,” he said. He also cited statutory authority when describing contract procedures: “Under section 642a of the school code, a school district in recovery may do that exact thing,” he told members when discussing contract abandonments.

What's next: The proposed final budget will remain on public notice for at least 30 days; the board is scheduled to consider final adoption at its June regular meeting. District administrators and the recovery team said they will continue work to narrow the remaining deficit, provide updated healthcare premium figures, and return with any contract revisions or recommended abandonments for formal board action.

Votes at a glance: Proposed final 2026–27 general fund budget — motion carried (majority Aye, one No); Personnel reports — approved (Aye); SHEA memorandum agreement — approved (Aye); Laurel Life Services agreement — approved (Aye); Iris Healthcare Staffing Agency agreement — tabled; Capital Area Intermediate Unit agreement — approved (Aye); Field trips >50 miles — approved (Aye).