Montoursville Area SD board reviews revised revenues, eyes 2–3% millage options and approves proposed final budget
May 13, 2026 | Montoursville Area SD, School Districts, Pennsylvania
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The Montoursville Area School Board on May 12 reviewed newly finalized assessment totals and revenue projections and approved a proposed final general fund budget for 2026–27 to be presented for final adoption June 9.
Business manager Missus Reich told trustees that county assessment figures changed since the October 2025 draft, trimming the district's assessed value and prompting adjustments to projected local revenue. "I received the email actually today, from the assessment office, so I got that information plugged in," she said.
Reich said she modeled three tax scenarios for 2026'27: no increase, a roughly 2.2% increase and the board's recommended 3% (a 0.56 mill increase). Under current assumptions, Reich said the general fund would show a deficit of $890,904; factoring one-time capital reserves lowered that to $423,404 but she noted those capital dollars are not in the general fund.
"So if we were to go with that 3% tax increase, we're still gonna take a deficit," Reich said, outlining how different millage choices affect the district's fund balance projections and pointing to an estimated ending fund balance that remains under the Pennsylvania 8% cap for the 2026'27 budget.
Board members pressed for clarity on spending assumptions, including salary changes and security equipment, and discussed whether to rely on fund balance or aim for a closer-to-balanced budget from administration. A public commenter earlier urged the administration to return with a budget "closer to being balanced without using as much out of the fund balance," and several trustees echoed that concern during debate.
After discussion, the board moved to approve the proposed final general fund budget (packet figure shown as $37,889,414) and took a roll-call vote; attending trustees voted in the affirmative and one member was absent. The approved proposal will appear on the June 9 agenda for final adoption.
Next steps: the board will hold the public hearing and final vote on June 9, when trustees will formally adopt or revise the budget and set the final millage rate.
Business manager Missus Reich told trustees that county assessment figures changed since the October 2025 draft, trimming the district's assessed value and prompting adjustments to projected local revenue. "I received the email actually today, from the assessment office, so I got that information plugged in," she said.
Reich said she modeled three tax scenarios for 2026'27: no increase, a roughly 2.2% increase and the board's recommended 3% (a 0.56 mill increase). Under current assumptions, Reich said the general fund would show a deficit of $890,904; factoring one-time capital reserves lowered that to $423,404 but she noted those capital dollars are not in the general fund.
"So if we were to go with that 3% tax increase, we're still gonna take a deficit," Reich said, outlining how different millage choices affect the district's fund balance projections and pointing to an estimated ending fund balance that remains under the Pennsylvania 8% cap for the 2026'27 budget.
Board members pressed for clarity on spending assumptions, including salary changes and security equipment, and discussed whether to rely on fund balance or aim for a closer-to-balanced budget from administration. A public commenter earlier urged the administration to return with a budget "closer to being balanced without using as much out of the fund balance," and several trustees echoed that concern during debate.
After discussion, the board moved to approve the proposed final general fund budget (packet figure shown as $37,889,414) and took a roll-call vote; attending trustees voted in the affirmative and one member was absent. The approved proposal will appear on the June 9 agenda for final adoption.
Next steps: the board will hold the public hearing and final vote on June 9, when trustees will formally adopt or revise the budget and set the final millage rate.
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