With nearly 70% of its budget coming from the state, the Allentown School District is breathing the deepest sigh of relief now that a four-month state budget impasse has been lifted, but all Lehigh Valley schools are assessing how the plan could bring future savings.
The state budget delivered for Lehigh Valley school, with the 17 Lehigh and Northampton county districts set to receive an 8.1% increase in state funding. Local school leaders are still calculating how changes to the cyber charter funding formula could affect their tuition payments.
“While we appreciate the steps the Legislature has taken to address the cyber charter funding formula, at this point our understanding of the anticipated cyber charter funding formula changes will not result in year-over-year budgetary savings but rather will provide future cost avoidance,” Craig Neiman, Northampton Area School District business administrator, said in an email. “We anticipate that our charter school costs will continue to grow in spite of the newly implemented funding formula changes, albeit potentially at a slower rate.”
The funding changes are expected to save school districts statewide about $178 million in cyber charter tuition payments, advocates of the change say, although what that will look like district to district will vary. The new formula allows districts to deduct expenses that cyber charters do not have — such as maintenance and tax collection services — before calculating the tuition payments they will send to cyber charters.
Allentown School District Interim Chief Financial Officer Jeffrey Cuff said the district is awaiting updated guidance from the Pennsylvania Department of Education regarding how tuition rates for cyber charter schools will be affected by the new funding formula .
Districts across the state pay differing rates of cyber charter tuition, so the new funding formula could have an uneven impact.
Under current rates, Allentown pays $13,597.82 for each regular education student attending a cyber charter school and $30,168.29 for each special education student.
In the Lehigh Valley’s next largest school district, Bethlehem Area, those rates are $15,276.46 for each regular education student and $30,693.22 for each special education student.
While the overall impact of cyber charter tuition changes is unknown, what is clear is that Lehigh Valley school districts will receive more total state funds under the new budget. Percent increases from the last budget range from 2.6% in Northwestern Lehigh to 12.6% in Wilson Area.
In terms of raw dollars, Allentown is the biggest beneficiary. Its $275.9 million state allocation is up more than $25 million from the last budget cycle, the third largest bump in total dollars of any Pennsylvania district behind Philadelphia and Reading.
“The Allentown School District is pleased to report that current state allocations have remained consistent with the projections made last spring,” Cuff said. “This fiscal stability enables the district to restore full operations, lift temporary spending restrictions, and advance its strategic priorities. The district extends its sincere appreciation to the community for its continued patience and support, as well as to our local legislators for their dedicated advocacy for the Allentown community.”
Some local districts reported a bump in state spending compared to what they anticipated in their budget calculations, which were finalized at the end of June, as required by law.
Basic education funding, special education funding and Ready to Learn Block Grants are the three main state funding streams that benefit local school districts.
Salisbury Township School District reported that its basic education and special education funding came in very close to projections, but the district will also receive $50,000 more than anticipated in its Ready to Learn Block Grant.
In total, the district will receive $61,572 above what was budgeted, Chief Financial Officer Dawn Nickischer reported.
“Our state allocation has also increased beyond what we originally budgeted, providing much-needed flexibility to address unanticipated costs and invest in capital improvements. I’m grateful to our legislators for supporting this important investment in public education and recognizing the needs of Pennsylvania’s public schools,” Salisbury Township Superintendent Lynn Fuini-Hetten said in an email.
Northwestern Lehigh School District also is set to receive an additional $50,000 in its Ready to Learn Block Grant. Changes to the other funding streams mean the district will see a net gain of $48,791 in state funds.
“Overall, the final state budget provides a modest but positive impact on the district’s financial picture. The additional state funding — particularly the higher-than-anticipated Basic Education Subsidy and the new Ready to Learn Block Grant — will help offset a portion of the district’s rising operational costs,” Business Administrator Christie Steigerwalt said in an email. “While the Special Education allocation came in below what we had projected, the net increase in state revenue will assist in maintaining educational programs and supporting student needs without placing as much pressure on local taxpayers.”