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East Stroudsburg Area SD board moves to reduce committed reserves, advance charter tuition proposal and routine mailings
Summary
The board advanced a proposal to pay charter schools 70% of current tuition pending state action, approved uncommitting $12 million from reserves and moved forward annual homestead/farmstead mailings.
The East Stroudsburg Area School District finance committee moved three budget-related items forward to the full board on Oct. 14, including a proposal to pay charter schools 70% of current tuition rates while awaiting state budget and tuition reform.
Dr. Vitale, a district staff presenter, told the committee the state has not passed a budget and that some districts are recommending paying charter tuition at a 30% reduction from the district’s current rate reported on the PDE 363 form. "There are several districts ... recommending to their board an action that we pay 30% less our current tuition rates," Dr. Vitale said, adding the approach aims to avoid later reimbursement requests if the state lowers charter tuition.
The action matters because delayed state subsidy receipts affect the district’s cash flow and interest earnings, the presenter said. He told the committee the district’s recommendation is to pay 70% now and leave 30% contingent on state action so charter operators continue to receive some payments even if the state changes the tuition formula.
Separately, the committee recommended reducing the district’s committed fund balance from $24,000,000 to $12,000,000 to allow completion of the annual financial report and finalize the audit. A staff presenter said the district currently has $18,000,000 committed for future retirement and $6,000,000 for future health care and recommended prorating those commitments down by half to $9,000,000 and $3,000,000 respectively. The presenter said preliminary budget review shows an operating deficit in the current year that requires freeing some of the committed reserves.
The committee also advanced the district’s annual homestead and farmstead mailings for Monroe and Pike counties. A staff member said mailing costs remain stable from last year at 42 cents for one county and 45 cents for the other.
The committee moved each item forward by motion; the motions were seconded and approved by voice vote. The motions did not list individual movers or recorded roll-call tallies in the transcript.
