Superintendent Dr. O'Donnell told the Downingtown Area School District board on Oct. 8 that the ongoing state budget impasse has created a cash-flow shortfall for the district and is affecting planning for the coming months.

“Today marks a hundred days without a state budget approved,” he said, adding that the impasse “represents about … 23% of our budget” and that “about $12,000,000 of cash flow that we should have received from the state” has not arrived. He told the board the missing funds have reduced potential investment income and forced the district to use other sources of cash earlier than expected.

Board members and residents asked how the district would handle the shortfall if state payments remain delayed. A community member, Erin Lytle, asked, “If we don't get the money from the state, what is our plan? How are we binding together? How are we keeping us, our good neighbor town?”

O'Donnell said the district will monitor the situation, that the legislature had no immediate return date for votes on the budget and that the district expects to report updates to the board. He noted the state Senate and House schedules reported in the meeting: the Senate was not expected back until Oct. 20 and the House until Oct. 27.

No formal action or emergency measures were adopted at the meeting. The board discussed the situation and directed administration to continue monitoring revenue flows, identify contingency borrowing or cash-management options as needed, and report back if conditions change.