Carlisle Area SD reports millions in delayed state funds, outlines cash-preservation steps
October 10, 2025 | Carlisle Area SD, School Districts, Pennsylvania
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A finance update to the committee warned that state-level budget delays are reducing Carlisle Area School District's cash receipts and affecting near-term interest income.
The presenter, identified as Mike from the district finance team, said the district had received $963,000 to date in Pennsylvania funding (the homestead/farmstead portion) but that the district was "about $5,000,000 short" compared with what it would have expected as of Sept. 30. He also said the district had roughly $3,600,000 in prior-year dollars that had not yet been received. "We have about $3,600,000 on our books from last year that we still haven't received," he said.
Mike and other staff described steps taken or available to protect cash flow while the Commonwealth budget remains unsettled. Options included using existing fund balance, scheduling invoice payments close to due dates, expanding reliance on P-card timing to extend payment windows, reducing nonessential purchases and encouraging virtual participation for some professional development. He said the district had not yet issued a revenue anticipation note but would aim to avoid that because of the additional costs. Mike said the district's audited general-fund balance was $35 million as of June 30, 2024, but noted that $3 million had been moved to capital projects and a budget gap for fiscal year 2026 remains under development.
Staff also described how delays affect state-administered federal dollars such as Title I and federal flows through the intermediate unit; Mike said those federal flows typically arrive later in the fall and can be further delayed when the state budget is unsettled. He reported the district had already lost about $80,000 to $90,000 in potential interest earnings because of delayed receipts.
Committee members asked about the state timeline and contingency planning. Staff said the Act 1 adjusted index for fiscal year 2027 came out this week and that the district's adjusted index is 4.6 percent; they reminded the committee that governor's proposals typically arrive in February and that school budgets are adopted locally in May or June. No emergency action was taken at the committee meeting; staff said they would return with any required board-level actions if the impasse worsened.
The presenter, identified as Mike from the district finance team, said the district had received $963,000 to date in Pennsylvania funding (the homestead/farmstead portion) but that the district was "about $5,000,000 short" compared with what it would have expected as of Sept. 30. He also said the district had roughly $3,600,000 in prior-year dollars that had not yet been received. "We have about $3,600,000 on our books from last year that we still haven't received," he said.
Mike and other staff described steps taken or available to protect cash flow while the Commonwealth budget remains unsettled. Options included using existing fund balance, scheduling invoice payments close to due dates, expanding reliance on P-card timing to extend payment windows, reducing nonessential purchases and encouraging virtual participation for some professional development. He said the district had not yet issued a revenue anticipation note but would aim to avoid that because of the additional costs. Mike said the district's audited general-fund balance was $35 million as of June 30, 2024, but noted that $3 million had been moved to capital projects and a budget gap for fiscal year 2026 remains under development.
Staff also described how delays affect state-administered federal dollars such as Title I and federal flows through the intermediate unit; Mike said those federal flows typically arrive later in the fall and can be further delayed when the state budget is unsettled. He reported the district had already lost about $80,000 to $90,000 in potential interest earnings because of delayed receipts.
Committee members asked about the state timeline and contingency planning. Staff said the Act 1 adjusted index for fiscal year 2027 came out this week and that the district's adjusted index is 4.6 percent; they reminded the committee that governor's proposals typically arrive in February and that school budgets are adopted locally in May or June. No emergency action was taken at the committee meeting; staff said they would return with any required board-level actions if the impasse worsened.
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