Jim Thorpe Area School District is facing a projected deficit of approximately $2.44 million in its preliminary 2025-26 budget, according to information shared during a recent board workshop and initial budget documents.

Projected loss and budget overview

Superintendent Robert Presley, who presented the initial preliminary budget to board members said the business office’s $2.5 million net loss estimation did factor in a predicted $700,000 in revenue from selling delinquent tax liens.

The preliminary budget includes a 14% increase in medical insurance costs and a 3% salary increase. It also accounts for an increase for employees under future contracts, which are up for renewal.

The proposed budget shows total expenditures rising from $50.17 million in the current year to $52.62 million, an increase of 4.87%. Revenue is expected to increase by 5.3%, from $47.46 million to $49.97 million.

Fund balance,

Considerations

Presley said the budget estimates that the district’s fund balance will begin 2025-26 at $12.5 million.

“However, the district may need to allocate some of that balance to pay for capital improvements,” he added. “There are no roofs or other major facilities projects in there. There is a $500,000 budget reserve, but that will get used for the roof project that we have the grant for. We have to match that.”

A feasibility study is also underway to assess the condition of district buildings.

“They’ll come back again next month to do that. Some of the buildings are looking at $30 million, so there’s definitely improvements in this district that have to get made,” Presley said.

Personnel and benefits costs

Personnel services and benefits account for a significant portion of the budget increases. Salaries for general fund personnel are projected to rise from $11.48 million to $11.9 million, an increase of 3.68%. Benefits are expected to increase by 11.3%, from $9.66 million to $10.76 million.

Next steps

The preliminary budget has been distributed to board members and posted for review.

“Obviously, these get adjusted, so we will look at the expenditures,” Presley said.

The board is expected to revisit the feasibility study and budget projections in the coming months as part of their ongoing discussions.