The Tunkhannock Area School District (TASD) School Board convened on April 10, 2025, to discuss critical budgetary challenges and proposed solutions for the upcoming fiscal year. A significant focus of the meeting was the projected $3 million deficit, which includes a $900,000 carryover from the previous budget year. The board presented four budget scenarios for consideration, ranging from a 0 mil increase to the maximum allowable increase of 3.984 mils.

The budget discussions highlighted that fixed expenses, particularly salaries and benefits, account for 72% of the total budget. Salaries alone represent 41%, while benefits, including a notable 16% increase in healthcare costs, account for 31%. This increase in healthcare alone translates to an additional $750,000 in expenses, equivalent to 2.5 mils in tax revenue. The board emphasized the importance of maintaining a healthy fund balance, currently projected at $14.4 million, which is earmarked for future capital needs, including necessary upgrades to aging school buildings.

The board also addressed the impact of declining federal funding, particularly the expiration of ESSER funds, which previously supported various educational initiatives. The anticipated reduction in state funding for basic education and special education was noted as particularly concerning, with only a $95,000 increase proposed in the governor's budget—the lowest in over a decade. This funding disparity places additional strain on the district, which is already facing rising costs associated with cyber charter tuition, projected to exceed $3 million annually for just 20 students.

In response to these financial pressures, the board is exploring potential cost-saving measures, including a proposed solar project aimed at reducing utility expenses. However, the feasibility of this project remains uncertain due to changes in federal incentives.

During the meeting, a motion was made to approve a 1 mil tax increase, which would help mitigate the projected deficit while ensuring that essential educational programs remain intact. The board is committed to reviewing budgetary options that minimize impacts on students, with further discussions scheduled for the next meeting on May 15.

As the district navigates these financial challenges, the board remains focused on maintaining fiscal responsibility while advocating for fair funding from state and federal sources. The outcome of these discussions will be crucial in shaping the educational landscape for Tunkhannock Area students in the coming years.