WHITEHALL TWP., Pa. – Like many area school districts, Whitehall-Coplay School District has joined the conversation on how it will pay the bills if the state budget impasse doesn’t come to an end soon.
Among the options are loans, officials said Monday.
“There are some districts that already had to go out for these loans. [We’re] hoping the hurt from other districts gets a move on in Harrisburg to approve something so we don’t have to go down this route,” said John Malay, the district’s business manager.
He said the district receives approximately $36 million from the state but can use its fund balance as a stopgap while the budget impasse lingers.
Pennsylvania’s budget impasse stems from disagreements among lawmakers over key priorities, including school voucher funding and transit support.
“We’re in pretty decent shape,” Malay said.
He cautioned, however, that the district must also be prepared if agreements aren’t reached soon.
“We cannot wait until January or February, as the money may dry up if all the other governments are there trying to borrow money from banks,” Malay said.
School taxes
Also, during the finance committee meeting on Monday, Malay addressed the Act 1 Index and tax increases for the 2026-27 school year. He said he does not believe the district will qualify for an exception from the state to go above the index next year, which is currently set at 4.7%.
The Act 1 Index was passed by a special session of the Pennsylvania Legislature in 2006 and requires school districts to receive voter approval or Pennsylvania Department of Education exceptions to implement tax increases greater than the index.
Property owners in the Whitehall-Coplay School District will see a 4.6% property tax increase for the 2025-26 school year.
For the 2025-26 school year, the district increased the tax on property owners by 4.6% to address a deficit in its $101.5 million spending plan. The district’s revenue for the year is calculated at $98.7 million.
The district’s initial proposal called for a 5.3% hike, which was the highest amount Whitehall-Coplay could raise taxes under the Act 1 Index.
Officials said the district will need to utilize its fund balance to close the gap even after the tax increase. Whitehall-Coplay’s ending unassigned fund balance is $7.3 million.