On Oct. 8, the Pennsylvania budget impasse hit 100 days.
As of October, the budget impasse is not impacting day to day operations within the district.
“We did go into critical spending, which means we are good to purchase needs, but not wants,” Superintendent Brad Hatch said.
According to Hatch, they are not limiting anything at this point.
“We are just using all of our financial reserves for daily operational costs and salaries,” Hatch said.
Should the impasse continue, there is a possibility that programs could be delayed or reduced.
“[The first to be impacted would be] the extras, trips, things that aren’t a necessary part of programs or extra curricular activities,” Hatch said. “For example, going to conferences, overnight trips would be suspended. But, we are in good enough shape where the day to day operations will be covered.”
Currently, the district is managing funding by dipping into reserves.
“Right now, we are utilizing our savings account, our rainy day fund,” Hatch said. “That [the savings account] will be exhausted by the end of November.”
Although the “rainy day fund” will run out by the end of next month, there is a contingency plan in place.
“We are currently exploring a combination of things,” Hatch said. “One is liquidating assets. We have investments in different things that we may have to pay penalties to cash out. But we also may be in a position where we have to take out short term loans to cover payroll and operational costs, expanses, healthcare, those kinds of things.”
The district has been making sure that staff, students and parents have been made aware of the impasse.
“We are transparent,” Hatch said. “We don’t hide anything. We made it very clear at our last board meeting about where we are at. We have roughly $25 million that we can utilize and $25 million in projected expenditures, between now and the end of November. If the impasse would go beyond that we would be forced to borrow money, which will just cost you money because you will have interest payments. It is just wasted money.”
As of October, the impasse has not impacted any services or funding for services for students.
“We’ve not reduced or eliminated meal payments on away trips,” Hatch said. “We’ve not reduced band trips or cheerleaders to away football games. We’ve not taken our athletes in yellow buses versus coaches. We’ve not done any of that at this point. Everyone has been paid; our bills have been paid. We are not at that point, but there is a limit for that.”
The ‘limit’ would be the end of November, which would also be the end of month five without a state budget.
“The majority of our funding is state funding,” Hatch said.
The district has been taking a ‘critical eye’ to their spending.
“The way it works is you budget for your spending throughout the year, and you complete purchase orders and you do your ordering as things are needed,” Hatch said. “A lot of the materials for the school year come over the summer, but obviously there are things that get billed over the year and payments that come up throughout the year. Essentially, we are strongly looking at every dollar being spent, and taking a critical look at pausing or postponing what we would consider to be not required spending at this time.”
During a press conference on Oct. 8, Representative G. Roni Green (D) spoke about the budget impasse.
“Every week, we’ve been close to a deal,” Rep. Green said. “Every week, we’ve been at the one yard line. Every week, the Senate Republicans forget they’ve got governing partners over in the House where we are ready to rumble, and we’re always ready to compromise…the time is long overdue to get serious about compromising.”
On the same day, the Republican party also had their press conference and discussed the budget.
“We’ve been very clear since the beginning of this session what we believe needs to happen,” Representative Doyle Heffley (R) said. “The governor [Governor Shapiro] proposed his budget in February. It was so out of line with the fiscal realities of this commonwealth, that it has led us to this point.”
Health teacher James D’Angelo believes the government should be focused on what is best for the people.
“It shouldn’t matter if you are a Democrat or Republican, our constituents should be looking out for our best interest not their gain or loss,” D’Angelo said.
Hatch feels that the State Representatives want the budget impasse to be resolved.
“They [Representatives] know the impact that it [the budget impasse] has on schools,” Hatch said. “It is a matter of getting all of the people in the room, and not letting them out of the room until they figure it out.”
The House of Representatives passed a resolution and sent it to the Senate, but they did not vote on it.
“We just have such a partisan climate right now,” Hatch said. “We need a way for everyone to come towards the middle, but they aren’t willing to do that because they are so far apart in ideologies.”
