PATTON — The Cambria Heights School District is facing a nearly $2.4 million deficit, according to the 2025-26 budget proposal reviewed Tuesday night.

To offset some of that deficit, the district is considering a four mill tax increase, which would generate $323,180 in additional revenue. To balance the budget, the remainder could be taken from the district’s general fund balance, business manager Stephanie Renninger said.

Board members reviewed the proposed budget, which shows revenues at $26,094,384 and expenditures at $28,394,290, leaving the district with a $2,376,339 deficit, Renninger said.

The average assessed value of a property in the district is $13,730, an increase of about $300 per household from last year, she said. Because of that increase, even if the district doesn’t raise taxes this year, the average tax bill will still increase by $19.

The proposed increase of four mills would raise the average tax bill by $73, while a three mill increase would raise the average bill by $59. A two mill increase would raise the average tax bill by $46, and a one mill increase by $32, Renninger said.

According to Renninger, the Homestead/Farmstead Exclusion, which reduces the amount of real estate taxes eligible property owners owe, increased $27.13 to $290.09.

“That would technically be a $40 increase ($45.87) for the households,” Renninger said of the tax increase district residents who are eligible for the exclusion would see if the board raises its millage rate by four mills.

Between 2020-24, the district didn’t raise taxes, Renninger noted, adding the board raised taxes by one mill last year for the 2024-25 budget. That set the district’s current millage rate at 68 mills, Renninger said.

Cambria Heights used to raise taxes by one mill every other year, according to Renninger, who said she thinks “that would be something to talk about” for the future.

As of Tuesday, the district’s general fund balance totaled $5,663,517, but Renninger said there are five assigned funds totaling $4,124,579 that are restricted and can’t be touched, leaving an actual balance of slightly more than $1.5 million.

Renninger stressed that figure will increase whenever the district starts collecting taxes July 1 and when the district receives its state funding.

Cambria Heights is expecting to receive $2.5 million from the state at the end of the month for its basic education funding, she said.

“That just shows them (the board members) where we are right now,” Renninger said of the $1.5 million fund balance figure. “This is our lowest point of the year because taxes are finished and revenues are finished coming in.”

Renninger said she’s confident the district will receive enough funding to balance the budget and not deplete the general fund.

It’s difficult to estimate how much funding will be in the general fund for next year because the amount of state funding the district receives fluctuates every year, she said. The anticipated amount of state funding the district should receive for 2025-26 is $17,014,141, but that amount is already calculated into the district’s projected revenues, according to Renninger.

“We’ve always had enough, but that’s why we had to raise taxes (last year) and why we’re trying to cut back on our expenditures because you can only do that for so many years,” Renninger said of raising taxes.

Superintendent Ken Kerchenske said the challenge school officials face is predicting reasonable numbers for revenues and expenditures so a preliminary budget can be passed in May and a final budget can be adopted before July 1.

But there’s no guarantee that the state budget will be in place on July 1, he said, adding, “We hope that the state budget comes out favorably for us.”

The “wild card” for school districts in this year’s state budget is efforts to reform cyber charter school funding, Kerchenske said, noting there are several proposals being considered.

“All of them would benefit the Cambria Heights School District, some more than others,” Kerchenske said. “We hope that some type of reform does get passed.”

One of the reforms being considered, Kerchenske said, would cap the amount of tuition school districts pay to charter schools at $8,000 for each regular education student who attends.

If an $8,000 cap on tuition is implemented, Cambria Heights would save $228,204, nearly half of what the district currently pays for the 36 regular education students to attend outside charter schools at a rate of $14,334 per student.

The district pays $26,493 each for 12 special education students to attend outside charter schools, Kerchenske said, adding there are also proposals that would cap special education costs.

Kerchenske said the district received a nearly $38,000 reimbursement from the state for cyber charter tuition last year, but “that’s not even in the current proposal Governor Shapiro issued a few months ago.”

In April, when concerned parents addressed the board about why one of the elementary school’s two music teacher positions was left vacant and not immediately advertised after a teacher resigned, Kerchenske said the funding the district would receive from cyber charter reform could be allocated for other purposes, like filling the position.

According to Renninger’s presentation to the board, 64% of the 2025-26 general fund budget is earmarked for salaries and benefits.

The district has 176 faculty members: 111 teachers, 20 custodians, 19 para educators, 10 secretaries, nine administrators, two nurses, two nurse assistants, one athletic director, one school police officer and one armed security guard.

A bar graph of the district’s enrollment numbers shows a gradual decline every year since the 2021-22 school year when the district had 1,316 students enrolled.

There are 1,244 students currently in the district. That number is projected to decline to 1,196 next school year and to 1,176 for the 2026-27 school year, according to Renninger.

The board is scheduled to approve the district’s preliminary budget at the May 20 meeting and adopt a final budget at the June 24 meeting. Both meetings will be held at 7 p.m. in the high school’s library.

Mirror Staff Writer Matt Churella is at 814-946-7520.