Cheltenham finance staff: cash strong but timing, special education and maintenance drive year‑to‑date increases

Cheltenham School District finance staff told the Financial Affairs Committee on Dec. 10 that the district has a healthy cash balance year to date, but several timing and one‑time costs account for much of the reported year‑over‑year increases.

The district’s interim financial statements show revenues of $114,000,000 compared with $105,000,000 at the same point last year and expenditures of $46,000,000 versus $43,000,000, producing about a $6,000,000 net increase on a cash basis, finance staff said.

That increase is “not all of this is a true increase,” said Mister Sawyer, a district staff member presenting the statements, adding that some of the difference reflects transactions not yet applied against receivables. “We have a nice healthy cash balance. Obviously, we have some bills to pay, but we have a…nice increase in cash from the year.”

Why it matters: the interim statements guide the committee as it prepares the preliminary budget and evaluates whether near‑term actions — for example, using a state supplement to mitigate millage increases — are needed.

Key drivers and clarifications

• Special education and tuition timing: Sawyer said special education tuition payments and the timing of receivable drawdowns account for a portion of the year‑over‑year growth and that increased staffing to serve students also contributes.

• Maintenance: The district is nearly $1,000,000 over last year in maintenance costs, largely because internal crews and vendors worked over the summer to ready the EPIC facility, including custodial work and heating/ventilation repairs, Sawyer said.

• Information technology: About $400,000 of costs for smart boards hit the current fiscal year when a grant ended Sept. 30, 2024; that timing caused an IT increase that posted in July rather than the prior year, Sawyer said.

• Employee benefits: A one‑time audit adjustment of about $125,000 increased employee benefits expenses this year, Sawyer said.

• Revenue timing: Sawyer said the district is temporarily showing large state and federal revenue receivables that will normalize when collections are applied against receivables. He said staff expect to be caught up by Dec. 31.

Budget pressures ahead

Sawyer listed the district’s primary future cost drivers: salary increases (the largest single cost), a 4% contractual increase in transportation, and a projected rise in the district’s pension/PSERS employer rate (quoted in the packet as moving from 34% to 34.7%, a roughly $500,000 swing if confirmed). He also noted a favorable first health insurance rate‑look of 1% that should reduce pressure relative to prior double‑digit increases.

Contract ratification and reporting: Board members asked when ratified contract changes will appear in the statements. Sawyer said the district is updating records and expects modifications to be reflected on statements through December or by the next board meeting, with retroactive pay applied when appropriate.

Discussion vs. action

This presentation summarizing interim financials was a staff report and discussion; the transcript does not record a board vote on changes to the budget or approval of the interim statements during this session.

Ending

Committee members asked for a deeper dive into state revenue timing and suggested staff include a more detailed reconciliation at the next meeting so the committee can better separate recurring trends from one‑time or timing‑related variances.