02/25/2026
2/9/2026 FINANCE COMMITTEE MEETING
The full board was in attendance, with Matt Parido joining via phone.
Audience members: 2
See links in comments for full recording and Finance packet for reference.
Summary on 2026-2027 budget and taxation:
đThe Business Department made the case for a 2.9% millage rate increase, citing the collective bargaining agreement that was approved and needing, on average, a 3% increase each year to support it. Mr. Stoltzfus laid out why he believes 2.9% is necessary to plan for both contractual cost increases and a run-in with the Act 1 Index in the near future. The board approved a 2.5% increase last year.
Dr. Peart added a statement of caution around continued taxation well below the scheduled salary increases: "We keep trying to pull a rabbit out of a hat, and I don't know how many more years we're going to pull out a 2.5% [increase] and be able to say, âHey, somehow we ended up with a balance, and we did a building [renovation].â We're hitting the end of the road, just to be honest."
đ¸Dustin Knarr, Finance committee chair, led with a suggestion of 2.5% and solicited thoughts from the rest of the group.
đ¸Andrew Welk stated he was hoping for 2%.
đ¸Kristin Staley: âIt's hard for me to put that on people, that we're going to raise it this much and also we're going to build another giant building - three buildings in a row - but also keep raising it. That's really hard. I would be okay with 2%.â
đ¸Kari Steinbacher: âI'm okay with 2.5%.â
đ¸Kelly Osborne: âI agree with [Mr. Welk], I think we should be looking at cutting programs vs. asking taxpayers every year to shell out more money.â
đ¸Suzi Knowles: âI'm okay with 2.5%.â
đ¸Dean McComsey: [unintelligible]
đ¸Melissa Herr: "I'd love to see between 2% and 2.5%. I don't want to go over 2.5%. Kelly [Osborne], to your point about chopping programs, I couldn't disagree with you more. We have a great program here for our students and our community, and I think this room would be full if you start saying cut the programs." ... "Bottom line is we want a good education for our students and we're giving that, and it takes money to do that."
đ¸Matt Parido had left the call so didn't provide input.
đ¸Scott Reikers, community committee member: "You're in the middle of this huge Martin Meylin project with huge financial responsibilities, and I think a middle of the road 2.5% makes sense. If it's too low, you've got time to adjust it in the next couple years; if it's too high, you can do the same thing. I think if you go any much lower than 2.5%, I think you're really jeopardizing the educational programs of the district."
đ¸Kevin Turner, community committee member, processed the conversation and recommended 2.5%, suggesting opportunity to move up to the Act 1 index the following year if financially necessary.
In-depth meeting coverage:
1. SPECIAL EDUCATION DISCUSSION
{first 9 minutes of recording, page 3 of presentation packet}
Amanda Allison reviewed the finances of special education, including expenditures and federal (IDEA) subsidies and state subsidies.
$21,500 per student. State funding of $3212 per pupil. Federal funds less than that.
Mrs. Knowles asked whether other school districts in the county have doubled in expenditures. Dr. Peart stated that they're seeing the same increases; L-S is not drawing expenses while other areas feel relief.
Mrs. Steinbacher sought clarification on whether students with gifted IEPs are included in these costs. Yes, the gifted program costs are likely folded in but individual names aren't included; would need to confirm.
Mrs. Staley asked if Title 1 school-wide would increase costs. No, less learning disabilities should have been flagged as a result of in-class Title 1 support for all students. School-wide Title 1 is not an added cost.
2. SCHOOL AGED CHILD CARE - SACC
{Starting at 00:09:10 of recording, ending at 0:26:22. See page 4 of packet.}
SACC fund balance is dropping due to a hold on low hourly rates for care, with increasing projected losses each year. Staffing is currently optimized with staff/student ratios met. Per the CBA (collective bargaining agreement), salaries will continue to increase. The fund balance is on track to reach zero by end of 2027. To avoid one large increase, the business department recommended a gradual increase schedule of $0.50/hour annually for the next few years. Kindergarten will increase $15/week on average. About $10/week increase for 1st-5th grade on average. The projected loss will continue, but the fund balance will be extended.
The cost of SACC will still be highly competitive: L-S continues to be the lowest in the county.
Mrs. Knowles asked what the price would be currently if L-S were not subsidizing with the fund balance. $7.50-$7.75/hour assuming enrollment and staff remain the same.
Mrs. Herr inquired about communications to parents about price increase. The rate will be announced by SACC after the board has decided it.
Mr. Knarr voiced a desire to not eat costs to subsidize for the relatively small amount of families who benefit. Would like to use it in a way that benefits everyone.
Mr. Welk asked if they can reallocate fund balance for another purpose aside from SACC, like putting it toward renovations. The board agreed if it was earmarked for SACC, it should be used for SACC. No specific example was provided as applicable to HH renovation.
Nobody voiced against raising tuition by $0.50 for 2026-2027 school year, so it will come back up at March meeting for approval.
3. 2025-2026 BUDGET REVIEW:
{0:26:22 - 0:32:30 of recording. Refer to pages 5-8 of packet.}
4. 2026-2027 BUDGET:
{Starting at 0:32:30 of recording. Refer to pages 8-13 of packet.}
Keith Stoltzfus reviewed expense trends and forecasts. Wages jumped from $11.03 to $15/hour in 2022. In July 2024, the district passed the CBA and talked about the need for, on average, a 3% annual increase to support it.
Act 1 index (tax increase at which a local referendum is required to pass it) is expected to drop down below current 3.5% level.
Assessment appeals will affect 2027-2028, not 26-27.
The district will have a 3.9% increase to total wages, matching the CBA.
A 6% increase in health insurance is expected.
Raymond James recommends a 0.05mil increase for the Hans Herr renovation.
The business department recommended a 2.9% tax increase based on the 5-year projection.
[Refer to presentation package page 12 for details, page 13 for the chart]
Concern for 26/27 budget is the 5-year forecast.
Mr. Stoltzfus said the Business Dept. "has continued to tighten the budget so that in this current year projection, the easiest way to say this is every year property taxes increase $1.5M, revenue up $2M, wages up $2M, $0.5M increase in purchase services, expenses are going up $2-3M a year, and L-S revenues are up about $2M. So you see our operating balance and the years out. Again, 26-27 is a budget we're approving or looking to be approved during the next 2 months. But we just want to make sure were looking at this in a 5-year look-ahead. You can see, just like we talked about with SACC, the diminished, unassigned fund balance three years out, through 28-29, if everything holds exactly per our 5-year projection, we're going to have to make some tough choices over the next few years if we're not keeping up the Act 1 index the index being 3.5% and seeing [near future reduction to] 3.3%, 3.2%, 3.1%. We're not going to be able to go to 4% or something. I'm not saying we ARE, but we won't be able to go to 4% increase without a referendum if the Act 1 Index in this forecast is correct."
Dean McComsey asked where the district would be financially now had it not had any millage rate increase last year. Answer: $1M in the red. And when you don't collect that million one year, now you're making up for $1M for each future year, additive.
Scott Reikers, community committee member, said the doom and gloom has proven to be false each year, per his experience, and no fallout has happened in the past.
Dr. Peart said Mr. Reikers had a good point but that the "tax when we need it" option won't be available with Act 1 limits coming down. Be aware of what's coming. To do what we want with programming and with Hans Herr, that's why you're seeing a 2.9% recommendation. Dr. Peart said, "We're to the point now of being tight, where it doesn't put us to Keith's point of that unassigned fund balance of 6-8%. Again, we're comfortable coming in recommending, this is really tightening the belt, but if you're going to go less than 2.9%, now we're messing with that and we may not have the ability to do that moving forward, looking at what we see on the horizon. Because there were some anomalies [in recent years], you're absolutely right.
We had the answers, we had all those things we used and we were able to supplement, and kind of do the shell game, if you will, because we didn't create new programs that we had to clip at the end because we couldn't support them in the regular budget. That's what you've seen play out in the last couple years since Covid.
"One-time anomalies include $4M in ESSR funds, $1M in interest income nobody projected. State funding has always been up in the air. We won't have as much wiggle room and need to truly focus on areas we need to control. We feel comfortable recommending this (2.9%). We would feel MUCH better with a higher number, but we feel this (2.9%) is a middle ground."
Dustin: "I don't want to handcuff anyone 10 years down the road because I need to do 1.5% or 1.9% or I did 0% again. I understand they want 2.9%. I'm not for that right now, I'm sorry, at this point. and for my projection of 2.5%, that's what I asked for for three years, and that's the plan is that you can do whatever you want, the nine of us."
Kevin Turner: "We're focused on revenue aspects, but we need to make sure we're programming our expenses as well. ... I don't want to cut into programs, but I also don't want to have a millage rate of 3% or 4%."
Welk: "I'm not at 2.9%. I was hoping for 2%, if that. ... I can't support 2.9%, I would love to see it come in at 2%."
Staley: "It's hard for me to put that on people, that we're going to raise it this much and also we're going to build another giant building - three buildings in a row - but also keep raising it. That's really hard. I would be okay with 2%."
Kari Steinbacher: "I'm okay with 2.5%."
Kelly Osborne: "I agree with [Mr. Welk], I think we should be looking at cutting programs vs. asking taxpayers every year to shell out more money."
Suzi Knowles: "I'm okay with 2.5%."
Dean McComsey: [unintelligible]
Melissa Herr: "I'd love to see between 2 and 2.5%. I don't want to go over 2.5%. Kelly [Osborne], to your point about chopping programs, I couldn't disagree with you more. We have a great program here for our students and our community, and I think this room would be full if you start saying cut the programs." ... "Bottom line is we want a good education for our students and we're giving that, and it takes money to do that."
Matt Parido had left the call so didn't provide input.
Scott Reikers: "You're in the middle of this huge Martin Meylin project with huge financial responsibilities, and I think a middle of the road 2.5% makes sense. If it's too low, you've got time to adjust it in the next couple years; if it's too high, you can do the same thing. I think if you go any much lower than 2.5%, I think you're really jeopardizing the educational programs of the district."
{1:12:35 in the recording}
Dean McComsey asked Mr. Stoltzfus where the tax increase falls related to the contractual increases. Mr. Stoltzfus made the case again, laying out why he believes 2.9% is necessary to plan for both contractual cost increases and a run-in with the Act 1 Index in the near future.
Dr. Peart then added a statement of caution around continued taxation well below the scheduled salary increases: "We keep trying to pull a rabbit out of a hat, and I don't know how many more years we're going to pull out a 2.5% [increase] and be able to say, "Hey, somehow we ended up with a balance, and we did a building [renovation]. We're hitting the end of the road, just to be honest."
Kevin Turner processed the conversation and recommended 2.5%, suggesting opportunity to move up to the Act 1 index the following year if financially necessary.
Next steps: April 13th will be the next finance committee meeting, and a proposed final budget will be presented at the board workshop meeting on April 20th. Both meetings are open to the public.
Meeting Adjourned at 7:55pm