Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Budget Finance topic
No spam. Unsubscribe anytime.
Cheltenham SD reports $96 million revenue through September; Act 1 base index set at 3.5%
Summary
District staff presented interim financial statements through Sept. 30 showing $96 million in revenue (down from $99 million a year earlier), a $3.7 million transfer to capital projects tied to the stadium, delayed state and federal aid, and an Act 1 base index of 3.5% that sets an early budget timeline and a Jan. 29 opt‑out deadline.
Cheltenham School District staff reported on Oct. 7 that total year‑to‑date revenue through Sept. 30 was $96,000,000, down from $99,000,000 at the same point last year, and explained a cash reduction tied to moving general‑fund surpluses into capital projects for the stadium and other work.
Mr. Swaggart, a district staff member, described the capital accounting: “So this this 15,000,000 consists of all of that money that was part way to be paid through the cap reserve fund. Now the stadium project is under is undergoing, and we have some other few other minor projects undergoing capital wise. We're starting to take that money and physically pay it to, the cap reserve fund the capital projects fund. Hence, this $3,700,000 reduction in that liability, that payable, and hence this, reduction in cash year over year.”
Staff said expenditures through Sept. 30 were about $26,500,000 compared with $26,400,000 the prior year. The district noted delayed state and federal funding streams: other than homestead payments, most state subsidy and federal funds for the fiscal year had not yet been released, producing a roughly $5,000,000 swing in cash flow over the three‑month comparison.
On local taxes, staff reported a $2,300,000 increase in local real estate tax collections tied to a rate increase, a 3% rise in earned income tax collections year over year, and strong real estate transfer taxes through the first three months of the fiscal year. Investment earnings have declined with falling short‑term rates.
Mr. Swaggart also reviewed Act 1 timing after the Pennsylvania index was released Sept. 30. “On September 30, we received our base index of 3.5%,” he said, explaining that the Act 1 base index is the maximum the district may increase taxes year‑over‑year without an adjustment or opt‑out resolution. He said the district’s market value/personal income aid ratio fell just below the threshold that would trigger an adjusted index this year.
Staff outlined the board’s schedule for budget‑season decisions: an enrollment update after the Oct. 1 count, a fast‑track preliminary budget review in November and December, and a Jan. 29 deadline to adopt any opt‑out resolution if the board decides to increase taxes above the base index. The preliminary and final budget approvals are expected in the spring to align with May and June board meeting timelines.
Board members asked how much uncertainty the state budget poses for the district’s planning. Staff said historically the state budget adoption has sometimes been delayed into December and that the district would need to make assumptions in preliminary budget drafts if state aid remains unknown.
Next steps: staff will present an enrollment update in November and continue budget planning through December; the board must decide before Jan. 29 whether to pursue an opt‑out resolution that would exceed the 3.5% base index.
