At a Cheltenham School District committee meeting, district staff said a federal decision to release Title II, Title III and Title IV funds will bring about $175,000 to the district, while state funding payments remain frozen until Pennsylvania’s budget is finalized.

The funding update matters because the state pause affects subsidy and reimbursement payments the district normally receives. "We received notification from the state that because of the lack of passage of the budget, we would no longer be receiving any cash flows from the state of Pennsylvania until the, the budget was finalized," said Josh (staff member), the committee presenter.

Although the White House initially said on June 30 it would not release Title II–IV funding, the federal government reversed course on Aug. 1 and released $230,000,000 in those programs nationally. Josh said Cheltenham’s share of that federal release is about $175,000. "That funding amounts to about a $175,000 for the district, so we're excited that that money is back in play," he said.

The committee discussion clarified how those federal titles are used. A committee member asked for context: "What are those specific titles being for us to show them?" The presenter explained: "We use Title II funding for class size reduction in sports classroom, including professional development for teachers. Title 3 is used for English language learners, immigrant students. ... And Title 4 is primarily used for professional development for our teachers, for education teachers, and advancement of speech." These explanations were given to help parents and community members understand program purposes and potential district uses of the funds.

Josh also told the committee that state-held payments are paused while the legislature negotiates a budget. He said the pause freezes basic and special-education funding, subsidy payments and certain reimbursements that normally flow through the state to the district. He emphasized the district’s near-term cash position remains stable because most local real estate taxes are collected in August through October. "So I didn't wanna create any sort of, or answer or wanna answer any questions about cash flow and worries of us being able to pay our bills. There are there are no worries. We're in a good, cash and we're in a good financial position," Josh said.

Committee members asked whether borrowing might be necessary if the budget remained unresolved into September. Zachary (committee member) said he had been "having some conversations around borrowing," and asked whether borrowing would be necessary. Josh responded that he did not expect Cheltenham to need to borrow in the near future, noting the districts most affected are those that receive a far larger share of their revenue from state and federal sources.

The committee did not take any vote on borrowing or on use of the newly released federal funds; those items were discussed for planning and monitoring only. Josh said the district had already planned responses to the earlier uncertainty and would continue monitoring state and federal developments.

Ending: Committee members expressed appreciation for the clarification. No formal action on state payments or borrowing was taken at the meeting; staff will continue to update the committee as state and federal budgets evolve.