Cost hikes leaving GASD budget in the red

With a $1.1 million spike in health insurance premiums coupled with a $658,000 jump in transportation, plus other increases, Gettysburg Area School District (GASD) expects an approximate $3 million hike in costs for the next year.

Belinda Wallen, GASD business manager, at Monday's board meeting shared more preliminary variables relative to the 2023-24 budget.

The approximately $3 million increase over this year's budget includes: $1.1 million for medical insurance and the health savings account; $658,000 in transportation; $552,000 in special education; $374,000 in charter school tuition and Adams County Technical Institute (ACTI) membership; $292,000 in general supplies, technology hardware and software; and $46,000 for utilities, said Wallen.

The increase in health insurance is attributed to the district being self-insured and having "some very expensive claims within the past year," Wallen said.

Salaries were not included in the list of budget variables because ACTI is taking on the cost of its staff as it moves toward becoming an independent entity, Wallen said. Salary increases for staff, including raising the entry wage from $12.65 to $13.75 for classified employees, were able to be absorbed because of ACTI, officials said.

A budget overview showed $74.5 million in expenses and $69.4 million in revenue, leaving a $5.1 million shortfall, according to Wallen.

Revenues increased by 2.69 percent over last year, while expenses went up 5.66 percent, she said.

Wallen also provided an overview of charter school tuition costs over the years.

The cost of charter school tuition started at $3.5 million in the 2017-18 school year, and has risen to a projected $4.5 million for 2023-24, Wallen said. During the pandemic, the 2020-21 and 2021-22 school years, charter school tuition costs were recorded at $5 million and $4.2 million, respectively. This year, Wallen said charter school tuition costs are estimated at $4.2 million, as well.

The $4.5 million projected charter school tuition cost "seems excessive" for the size of GASD, said Al Moyer, board member, who asked if it is possible to secure a breakdown for kindergarten through 12th grade.

Moyer, who said he previously served as a co-chair on a Pennsylvania School Boards Association committee on charter school reform, asked if administrators have any theories on why people are choosing charter schools.

"Somehow, someway along the way, we as a district can develop some strategies to stop the bleeding there," Moyer said.

This is "pulling resources away" from other funding opportunities and needs, he said.

"Also, it will possibly force us to increase millage on our community, our taxpayers, unnecessarily, in my opinion," said Moyer.

There was no discussion on any potential tax increase in the budget presentation Monday.

The numbers for students going to charter schools is "heavier" at the elementary level, for kindergarten through sixth grade students, GASD Superintendent Jason Perrin said.

GASD enhanced its website with virtual tours to assist families in making "informed choices," said Perrin.

If 10 people were asked why they chose a charter school, they would receive 10 different answers, said Perrin.

GASD sometimes makes telephone calls to students enrolled in charter schools to offer tours of the district's buildings, he said.

"We think about it quite a bit," said Perrin.