CLSD board hears proposed budget

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The Cornwall-Lebanon school board heard the proposed 2026-27 budget at its workshop May 11, including a potential 3.9% tax increase.

Expected expenditures, director of business affairs Jean Hentz explained, total $119,634,821, and planned revenues total $116,863,133. In order to balance the budget as proposed, the millage rate would need to increase by .75 mills to 19.9606 mills, she said.

The largest increase to the draft budget is employee salaries and benefits, a line item that increased by $4,202,500. Other major expenditure increases include special eduction, IU, and other placements ($350,000), third-party cyber and charter schools ($375,000), the transportation contract ($483,000), and the building renovations allocation ($750,000).

Expenditures are divided as follows, from largest to smallest percentage of the budget: Salaries (38%), other expenditures including bond payments (13%), PSERS/retirement (12%), other service purchases including transportation and tuition (12%), healthcare (10%), purchasing professional services (6%), other benefits (4%), supplies and equipment (4%), and purchasing property services (1%). Revenues are expected to come primarily from local sources (68%), then state sources (31%), with 1% from federal sources.

School districts are bound by numerous mandated expenditures, such as retirement spending. CLSD spends $14.9 million on retirement contributions, for instance, half of which is reimbursed by the state. The school also must contribute designated amounts for students entering cyber or charter schools, with $3,295,650 designated this year (a 13% increase from last year).

Hentz also reviewed payment plans for building renovations. The district is currently paying loans taken out for the Falcon Connector and other recent renovations, as well as Union Canal’s renovations (which will be fully paid back after 2026-27). In 2027-28, the district will begin paying for middle school renovations, which will be partially paid for from the assigned fund balance for two years before leveling out in 2029-30.

Though the budget has been proposed, it is still subject to change, especially as the state has not yet passed its budget and determined Basic Education Funding, Special Education Funding, and Ready to Learn Grant Funding. Federal subsidies for title programs are also up in the air, Hentz said.

While the board is scheduled to vote on adoption of the proposed final budget at its regular meeting May 18, it will be subject to tweaks through May and June, with the real estate tax rate only slated for adoption June 15. Further modification could be made depending on state budgets.

Also in finances, the board:

• Heard an update on the district’s investment program, including the interest earnings for the last several years (a very volatile line item) as follows:
  • 2024-25: $2.7 million
  • 2023-24: $2.6 million
  • 2022-23: $1.7 million
  • 2021-22: $69,000
  • 2020-21: $55,800
  • 2019-20: $470,500
• Heard an update on employee benefit renewals:
  • Medical insurance, the district self-funded medical program with Highmark as administrator, planned rate increase of 15%.
  • Vision insurance with National Vision Administrators (administered by PA State Education Association, PSEA), expiring June 30 and up for a two-year renewal, no increase.
  • Dental insurance with United Concordia, annual renewal with no increase in cost.
  • Long-term disability and life insurance, remaining in a three-year contract with CM Regent Insurance, which began April 2025, no change in rate.
• Heard bid results for art & general supplies ($49,183) and copy paper ($62,076), for adoption next week.
• Heard fuel bids, with low bids from Petroleum Traders ($3.18/gallon Fuel Oil Transport, $3.32/gallon Ultra LSD Diesel Transport, $2.66/gallon Unleaded Gasoline Transport) and Sunoco ($3.74/gallon Fuel Oil Tankwagon with winter additive of $.025/gallon), to be approved next week.
• Heard an update on the district’s planned depositories for 2026-27.
• Heard tuition rate of $13,667 for elementary and $14,496 for secondary education for 2026-27, though no students are currently paying tuition.
• Heard the 2026-27 Lebanon CTC budget, with a 2.2% increase.

In other news, the board:

• Heard change orders for the high school renovation and stadium improvements projects.
• Heard that the district received a low quote of $15,000 for State Drive Sports Field repairs.
• Heard that 395 students are slated for or have already (in the case of students that took January graduation) graduated in the Class of 2026.
• Heard that the curriculum for world languages and physical education/health are up for approval, with the district on a five-year curriculum cycle.
• Heard an update on revised policies up for adoption including Academic Standards, Curriculum Development, Taxable Fringe Benefits, and Property Records, with the intent to update policies to current practice.
• Heard an update on the district’s three-year therapy services contract with Austill’s Rehabilitation Services.
• Heard an update on the district’s summer food service program.
• Heard that the district conducts annual lead testing in all buildings.
• Heard a request to consider possible delegates for the 2026 PSBA conference.
• Heard that the CTC election of board officers is upcoming.
• Heard that the board treasurer election is upcoming.
• Reviewed 2026-27 meeting dates.
• Heard various extracurricular requests, as well as athletic equipment and supplies bids.
• Heard multiple personnel items.

No action was taken Monday, as the meeting was a workshop held for informational purposes. Board members will take action on these items at the board’s regular meeting May 18.

The Cornwall-Lebanon school board holds a work session the second Monday of each month and its regular meeting the third Monday of each month, both at 5:30 p.m. Meetings are held at South Lebanon Elementary School due to ongoing construction at Cedar Crest High School.