MIFFLINTOWN — With the budget deadline approaching, the Juniata County School District Board of Directors continued discussions on Wednesday night on a 2026-27 spending plan that currently shows no tax increase.

During a workshop meeting at the administration building, Juniata County School District Business Manager Rich Meily said the district is in stable shape heading into the new fiscal year, with revenues holding steady.

“We are looking good for the upcoming year,” Meily said. “The budget is balanced with no tax increase.”

A key factor in maintaining that balance has been strong grant funding.

“We’re one of the districts who made out pretty good with grant funding,” Meily said.

However, much of the discussion focused on financial pressures beyond the upcoming year, particularly cyber charter school costs and the district’s long-term outlook.

Cyber charter funding changes

Meily outlined changes to cyber charter tuition rates, noting the system now includes four different student rate categories. He said those changes could prove “beneficial” to the district, which currently has some of the lowest tuition rates.

At the same time, the formula for calculating expenses continues to evolve. Roughly 20% of student-related costs are excluded from certain calculations, while maintenance costs tied to cyber charter funding have increased from about 60% to a projected 80%.

“These are variables we still have to work through,” Meily said.

Capital reserves

and investments

The district maintains approximately $9 million in its capital reserve fund, providing flexibility to address facility needs.

Director Jackson Albert suggested the district consider directing additional resources toward capital improvements and teacher salaries.

Juniata County School District Superintendent of Schools Christie Holderman said the district may want to act sooner rather than later on major projects.

“We could tackle projects next year before funding becomes more challenging,” Holderman said.

Debate over taxes

Although the current plan does not include a tax increase, several board members discussed whether modest annual increases could help avoid larger financial problems down the road.

Director Gabby Fisher advocated for a consistent approach rather than prolonged periods without increases followed by larger hikes.

“Maintain small incremental increases each year rather than nothing and then a large increase,” Fisher said.

Albert expressed a similar view, emphasizing the need for proactive planning.

“Half a percent, a quarter of a percent — just to tread water and not to sink,” he said.

Meily noted that a 0.5% tax increase would generate about $120,000 in additional revenue.

Directors asked to see a budget model with potential tax increases from 1% to 3%. Meily said the budget also includes funding for an additional teacher and a social worker.

“There are a lot of pluses to having some kind of increase,” Meily said. “I realize we’ve raised taxes year after year after year. That’s what’s got us to this point.”

Still, some board members urged caution. Director Doug Kline said he was hesitant to support tax increases, while Director Angela Varner pointed to past consequences of holding taxes flat.

“Look what it did to us all those years,” Varner said.

Meily acknowledged the challenge of balancing taxpayer concerns with district needs.

“Nobody likes to pay taxes, but taxes are low here,” he said.

Long-term concerns

Despite the relatively positive outlook for 2026-27, Meily warned the district’s financial cushion is shrinking. The fund balance, often referred to as a “rainy day fund,” is being depleted.

“It’s living on borrowed time,” Meily said. “The outlook is not good moving forward.”

He added that even districts that have raised taxes are still facing budget deficits, increasing pressure on the state to provide additional support.

“The state’s going to have to come through with funding,” Meily said. “Schools have deficits in their budgets even with raising taxes.”

As discussions continue ahead of the budget deadline, board members indicated they will weigh maintaining a no-tax-increase plan against preparing for mounting financial challenges in the years ahead.

NEXT MEETING

The directors will hold their regular monthly meeting on Thursday, May 14, at the administration building in Mifflintown.