William Penn SD faces multiyear budget shortfall; consultants outline $9.2 million gap under status quo

Consultants from Public Financial Management presented a baseline multiyear projection Wednesday showing William Penn SD would face a $9.2 million shortfall in a status‑quo budget and recurring deficits averaging roughly $5.7 million per year from 2025–26 through 2029–30.

"This is a status quo projection," said Soraya Loussaint, a PFM consultant, describing the model that holds existing revenue assumptions and does not include corrective actions. The presentation and backup analysis were shared with the board so staff can use the projection in upcoming budget development.

The projection drew on the district's audited statements from 2019–20 through 2023–24, PFM said. The consultants reported the district had three of five years with negative net operating results and a negative $4,700,000 ending fund balance for 2023–24. PFM said the district budgeted a roughly $3,000,000 positive operating result in 2024–25 tied to cash‑flow borrowing; the consultants assumed a remaining cash‑flow balance of about $3,000,000 at year end for modeling purposes.

Ian Tyson, a PFM director, summarized the drivers behind the shortfall as limited recurring revenue growth and expenditures that are growing faster…