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Cheltenham SD finance committee: cash up $4.7M but structural balance down $3.2M year over year
Summary
At an April 1 finance committee meeting, district finance staff reported a $4.7 million increase in cash year over year, revenue up $2.2 million and expenditures up $5.4 million — a $3.2 million negative shift in structural balance driven largely by staffing, contract settlements and increased special-education placements.
Cheltenham School District finance staff told the district finance committee on April 1 that the district’s cash position is $4.7 million higher than a year ago while revenues are $2.2 million higher and expenditures are $5.4 million higher, producing a year‑over‑year structural change of negative $3.2 million.
The finance staff member said local sources rose about $1.7 million, driven mainly by real estate tax receipts, and cited state aid and a one‑time charter school reimbursement that increased revenue this year but may not recur next year. The staff member said wage increases and contract settlements pushed up regular-program expenses and that special-education costs rose by about $1.8 million year over year.
That special‑education increase includes roughly $800,000 in tuition and related costs for students placed in approved private schools and facilities, staff said. Placements increased from 56 students last year to 63 this year, a trend the presenter said other local districts have also experienced.
The presentation noted some operating and maintenance increases tied to one‑time capital or facility work, including work to bring Elkins Park back online and startup costs related to an "epic" program, which staff characterized as largely nonrecurring. The committee was told that after accounting for those items the district remains close to budget targets in many areas.
Committee members asked whether the trend signals a looming deficit. The staff member responded that the district closed fiscal year 2024 with a $6.0 million surplus and 2023 with a $9.0 million surplus, and that current trends imply a projected general fund surplus of roughly $2.0 million for 2025, though the presenter cautioned that unknowns remain and that the district still must prepare for the May budget discussion.
When the district posts a general fund surplus, the staff member said, the practice has been to transfer those funds into the capital reserve fund to pay for required maintenance and future construction so taxes need not be raised for those projects. The presenter also reviewed other fund types the audit will cover, including the capital projects fund (bond‑funded construction projects), proprietary funds such as food service and an internal service fund for self‑insured health coverage, and fiduciary funds including an OPEB trust and student activity accounts.
No final audit report was available at the meeting; the staff member said auditors have indicated the district is likely to receive an unmodified opinion for the year ending June 30, 2024, but said the committee should wait for the formal report before celebrating.
The committee did not take new formal budget actions at the meeting; members discussed the data and scheduled a fuller budget conversation for May.
