As the Slippery Rock Area School District prepares its budget for the upcoming school year, the district is predicting a deficit of $1.3 million, which could prompt a tax increase or cuts.

According to preliminary figures shared with the board at their May 12 meeting, the district expects to bring in nearly $39 million in revenue, while spending just over $40 million. This leaves district administrators and board members to make decisions related to raising the taxes and cutting costs from the budget.

Per information provided to the board by district business manager, Paul Cessar, if the district were to address the deficit through a millage increase alone, balancing the budget would require an increase of 8.73 mills.

Such an increase, however, would not be possible, under Pennsylvania’s Act 1 index, local property tax millage is capped on how much the millage the district can increase without voter approval or special exceptions. For the 2025-2026 year, Slippery Rock’s allowable increase is set at 5.31 mills.

“We [the district] wouldn’t have qualified for an exception, and we weren’t going to put it out for a vote,” Cessar said.

With the value of a single mill estimated at $148,000, the proposed 5.31 mill increase would generate approximately $785,880 in new revenue, while it would significantly close the gap of the current deficit, the district would still need to address a deficit of approximately, $500,000.

School board member, Mark Taylor voiced concern over the idea of raising the tax millage, asking the board to consider cutting costs in other areas, such as special education.

“A 5.31 mills increase, I can’t support that, we need to get creative in order to pass this budget,” Taylor said.

According to Taylor, one of the areas the board identified for potential cost cutting in 2024 was in special education.

Cessar says it is not so much about “cutting” as it is about managing costs. One of the more expensive costs associated with special education pertains to how the district sends students to outside schools.The costs include attendance and also transportation.

“I want to make it clear our first priority is examining the needs of the students and making sure we can meet those needs appropriately,” Cessar said.

This could mean that administration could consider bringing some students back to district school campuses, as long as district can ensure their needs can be met in-house.

According to Cessar, administration is currently working on different options to present to the board on how they will address the deficit without imposing a sizable tax increase.

“The board has said that [the millage increase and the deficit] needs to be lower, so there will be changes,” Cessar said.

Slippery Rock will present the preliminary budget for a vote at their next scheduled board meeting on May 19. What exact changes will be made to the budget and any tax millage increase will be made public at that time.

After the May 19 meeting, the preliminary budget will be posted for public review for thirty days prior to final adoption. The district’s budget is due by June 30.