As the budget impasse lingers on, more districts are coming forward with their stories of impact on them and their students. From a distance, the impact is hard to see, but get on the ground and in the schools and you start to understand that the lack of state funding is real and impacts real people. The Pennsylvania School Boards Association (PSBA) is gathering these stories and will be sharing them weekly with the media. Depending on their individual financial situations, schools are reaching into reserves, taking out loans, adjusting budgets, cutting programs and potentially deciding what bills can be postponed. All of this is being done while still providing the highest quality of education for Pennsylvania’s most important asset – its students. PSBA will also will be posting stories as they get them at https://www.psba.org/issue/budget-impasse-stories/.

Budget impasse may force Johnsonburg SD (Elk Co.) to borrow again by mid-April
Current funding will carry Johnsonburg Area SD in Elk County only as far as mid-April. Then the district will need to borrow funds again to operate unless state funding is released. When partial state funding was disbursed in January, the district used it to pay back loans it had taken out in 2015. The $1 million loan is still open, but the amount may have to be increased in order to carry the district past April. Student field trips, tutoring and technology purchases have all been cut to save money, needed repairs and improvements are being delayed, and a hiring freeze is in effect due to the budget impasse. 

Mid Valley SD (Lackawanna Co.) exhausted fund balance due to budget impasse
Mid Valley SD in Lackawanna County will be able to stay open until the end of this school year, but at the expense of programs and materials. The budget impasse has forced the district to cut afterschool tutoring and programming, and limit professional development and student field trips. Compounding the problem is the fact that the district has been awaiting PlanCon reimbursement of more than $1 million since 2014. The district’s fund balance has been exhausted, and it is holding vendor payments and paying for essentials only. In order to stay open, Mid Valley took out a tax revenue anticipation note (TRAN) for the 2015-16 year which will need to be paid back by June 30. It will likely need another TRAN for the coming school year if a state budget is not passed.

Budget impasse forces Northern Lebanon SD (Lebanon Co.) to consider tax increases
Lack of funds due to the budget impasse is desperately hurting school districts across Pennsylvania, including Northern Lebanon SD in Lebanon County. The district will stay open through the remainder of the 2015-16 school year, most likely with help from a $13 million tax and revenue anticipation note (TRAN). If a TRAN is not used, the district may have to close in June due to a completely depleted fund balance. If no state funding is forthcoming this school year, district taxpayers will probably be called upon to help make up the shortfall in funding with Act I maximum real estate tax increases including referendum exceptions, pending board approval.

Montrose Area SD (Susquehanna Co.) may not operate past April without state funds
Officials at Montrose Area SD in Susquehanna County say the district may not be able to operate past April without state funding. Programs already have been cut to the bone and the budget has been frozen in an effort to save funds. The district currently has an open teachers’ contract, but good-faith negotiations are not possible without a state budget for 2015-16 and for the following school year. 

Monessen City SD (Westmoreland Co.) puts tutoring, projects on hold during budget impasse
Monessen City SD in Westmoreland County will not be able to make payroll after April unless state funding comes through or it takes out more loans. Tutoring, textbook purchases and building maintenance projects have been put on hold so that the district can continue to operate during the budget impasse. Loan repayment is a major concern. If a state budget is not forthcoming by June, the district may not be able to repay loans that are due at that time. 

Source: PSBA Media Advisory, March 18, 2016.