Springfield Township School District finance officials told the district finance committee on Oct. 15 that roughly $3,000,000 in state and federal reimbursements are being withheld while the Pennsylvania budget remains unresolved and some federal funding is paused during a U.S. government funding lapse.

Superintendent Dr. Yannickone opened the meeting with a state-budget update, saying, “As you likely know, members of the board, as of this week, the Pennsylvania budget is 100 plus days overdue.” Finance staff said the withheld funds are a mix of state subsidy and federal pass-through dollars that will be distributed once the state budget is enacted and federal funds are released to the state.

The district’s Business Administrator, Miss Green, said the district has a healthy cushion: “As of July 1, our fund balance for the general fund was about $20,500,000.” She told the committee the district has realized about $48,000,000 (roughly 64%) of budgeted revenue year to date, has spent about $13,000,000 (about 17% of budgeted expenditures) and collects roughly 98% of property taxes after the discount period. Enrollment was reported at 2,455 students as of Oct. 1.

Officials noted the largest operational uncertainty is the national school breakfast and lunch reimbursement program, which the business office was told had federal funding through September but could be affected if the federal lapse continues. Miss Green also said the district budget for 2024–25 had been conservative on federal grant assumptions and did not rely on some titles that had been proposed for reduction during budgeting.

Committee members asked for estimates of specific federal tranches held at the state and about risks posed by the federal shutdown. Miss Green said Title I and other title funding allocations have been released to the state and are awaiting state appropriation for distribution; she identified the lunch/breakfast reimbursements as the principal remaining federal risk.

On audited statements, staff explained a large pension liability reported under GASB rules drives a negative net position on the district’s financial statements but does not represent a payable obligation the district must satisfy directly. Dr. Yannickone said the PSERS (Pennsylvania Public School Employees’ Retirement System) unfunded liability “sits with PSERS. That does not sit with the district.” The finance office cited last year’s PSERS liability at roughly $87,100,000 and reiterated that the district satisfies its certified annual employer contribution each year.

Committee members pressed staff on community misinformation that the district was “bankrupt.” Miss Green rejected that characterization and noted independent auditors and bond-rating agencies monitor district finances. She said the district’s credit rating from Standard & Poor’s is AA- (double-A minus), which supported recent borrowing for a more than $30 million middle-school project.

District leaders described mitigation steps if the delay continues: using existing reserves, drawing on investment income, borrowing short-term from the state (a loan option districts may use until the state budget is resolved), or limited use of fund balance. Miss Green said the approved budget for the current year included an anticipated use of fund balance “a little under a million dollars.”

The committee also reviewed the 2026–27 budget timeline and guiding principles. Staff said the district will present an accelerated opt-out resolution at the Nov. 18 board meeting certifying it will not raise taxes above the Act 1 index (certified at 3.5%). Key dates: first look at the 2026–27 budget and the district’s 2026 financial plan in February; proposed final budget in April; final adoption in June. The finance committee will meet again Nov. 19 for a state/federal update and the 2024–25 audit presentation.

The finance office stressed that essential services — Title I reading supports, all special-education services, and universal meal service during the current period — are being sustained.

Looking ahead, staff said they will continue to monitor state and federal developments and report material changes to the board and public.