The Quakertown Community School District Board of School Directors voted 5–4 to withhold 25% of payments to charter schools, approving a resolution the board said aligns withholding to the share of budgeted state subsidy not yet received.

Board President Hippoff called for the motion to “approve resolution to withhold 25% of charter school payments as presented.” After discussion among members and administrators, the board adopted the measure in a roll-call vote that split along familiar fiscal lines.

Why it matters: board members said the district faces a shortfall tied to a state budget impasse and that withholding is intended to protect the district’s operating cash while pressing for a statewide resolution of charter funding. Opponents said withholding would harm students who attend charters and may not influence state lawmakers.

Board discussion and reasoning
Board members who supported the resolution tied the percentage to a district calculation of withheld state subsidies. The administration said the state subsidies not yet received equaled 24.9% of the district’s budgeted revenue, which the administration presented as the rationale for a 25% hold.

Director (Speaker) Spear summarized the administration’s calculation for the board: “Our state subsidies that we have not received yet are 24.9% of the budgeted revenue in total, so we averaged 25%.” The administration clarified there was $1.1 million owed for July, August and September payments to charter providers; a 25% hold on that amount would be roughly $275,000, and the board was told monthly charter outflows average about $387,000.

Opponents warned of consequences for charter students and questioned whether withholding would move state negotiators. Director Lyons said, “These are our students, all of them. And I believe we should fund them fully as we would if they decided to show up on our door.” Lyons also described fiscal variability across charter providers and questioned the tactic’s likely influence on the legislature.

Supporters argued the move is a limited, proportional response to a funding shortfall and a lever to focus attention on the budget impasse. One supporter noted that some districts are pursuing similar steps and that districts face real cash-flow pressures if state subsidy payments are delayed.

Legal and practical clarifications
Administrators told the board that withheld funds would be reconciled once the state budget is settled and that any final retroactive payments could be affected by state-level charter payment or reform provisions. The board also discussed whether federal pass-through funds would change the share calculation; administration said the resolution’s calculation did not include federal pass-throughs and could be adjusted if the board directed it.

Vote and immediate outcome
President Hippoff called the roll. The vote was recorded in order and the resolution passed 5 to 4. The board directed administration to implement the withholding as written in the resolution and to continue communications with charter providers and state representatives.

What the decision does not do
The action does not terminate charter contracts, change enrollment or otherwise cut student services; administrators said the district intends to reconcile payments retroactively when state funding arrives or if the board authorizes otherwise. Members repeatedly emphasized the step is a fiscal measure tied to the state budget, not a comment on individual students’ eligibility or educational status.

Next steps
Board members asked administration to keep the board informed monthly about the cash-impact of the withholding, any state guidance on charter payments, and whether federal pass-through amounts change the calculation. Several members urged continued outreach to state legislators to resolve the budget impasse that prompted the measure.

Ending note
The board’s decision is likely to draw attention regionally: members noted other nearby districts were considering or had adopted similar measures amid delayed state payments and ongoing discussion of cyber-charter funding reform.