EMMAUS, Pa. – The East Penn Board of School Directors on Monday discussed the possibility of withholding charter school payments until Pennsylvania restores regular state funding to school districts.
District Business Administrator Robert Saul said East Penn’s finances are stable through February 2026, but that charter school payments are legally required.
Some districts, however, have voted to withhold payments.
In September, the Bethlehem Area School District’s board of directors approved a resolution to withhold part of its charter school payments until the state passes a budget.
“Tonight, the board has taken an important and necessary step to protect the financial stability of the district during this state budget impasse,” Bethlehem Area School District Superintendent Jack Silva said in a statement that night.
The Bethlehem Area School District Board of Directors voted Monday to withhold a portion of charter school payments until the state passes a budget.
Silva said Bethlehem receives about one-third of its funding from the state, forcing it to operate without the money it is owed. Even with delayed state payments, districts must still cover expenses, including charter school tuition.
Saul described such actions as “primarily symbolic, intended to express frustration with the ongoing budget impasse and with the current charter school funding formulas.”
However, he said, “These actions carry legal and financial risks.” Delayed payments could incur interest and penalties, ultimately costing districts more money and financial ratings.
Saul added that withholding payments “could strain already fragile relationships with charter schools and potentially expose the district to legal disputes.”
He said East Penn is fortunate to rely heavily on real estate and local earned income taxes and not state funds. Saul said the district can maintain operations until February.
Board members said that even though East Penn is financially secure, they should show support for districts more dependent on state funding.
“I think if we were in a different financial situation, we’d definitely be looking at a remedy like that,” said board member Alisa Bowman. “February isn’t that far away. I think this is something that should be an active discussion.”