Finance committee: state budget hold-up, federal-grant delays and contract items detailed

The Wallingford-Swarthmore School District finance committee on Aug. 19 heard staff describe how the unpassed Pennsylvania governor’s budget was delaying state subsidy disbursements and how that pause affects some federal consolidated grants and reimbursements.

Joanna, a member of the district business office, told the committee that several state subsidy lines tied to the governor’s budget were not being disbursed and that, when she compiled the amounts at the state level, it totaled roughly $2 billion statewide not yet released to school districts. She also said an additional $250 million in consolidated federal grant money had been held by the state as of June 30; that action delayed some federal Title grants in the district’s consolidated application. “Title 1 and Title 2 parts of our consolidated application will be submitted by September,” Joanna said; she added that the district expects Title 3 and Title 4 allocations to be uncertain pending state actions.

Nut graf: The finance committee’s briefing linked short-term cash-flow and reimbursement timing to state-level budget negotiations, while outlining grant-application status, contract recommendations and internal financial controls intended to reduce future risk.

Staff emphasized the district’s relative insulation from immediate cash shortfalls because roughly 75% of its revenue comes from local taxes, even as other districts told the business office they face significant near-term cash challenges. Joanna described expected but delayed reimbursements including Social Security quarterly reimbursement (about $561,000 for April–June) and other state subsidy balances the district anticipated receiving once the governor’s budget is approved.

The committee received a summary of 14 contracts slated for board consideration Aug. 4, including two replacements, eight renewals and four new contracts. Staff highlighted a proposed three-year bus-lease contract replacing the current lease; staff presented the contract as a three-year agreement with an annual cost of about $248,000 and a total cost not to exceed $747,143, and said the annual cost would be roughly $100,000 higher than the current lease due to industry-wide increases in bus manufacturing costs. Business-office staff recommended using municipal pricing to save about $40,000 over the lease term.

Committee members also heard operational updates: the district’s free-and-reduced lunch direct certification on Aug. 4 captured 414 students, staff said, and parents may add funds to MySchoolBucks (MySchoolBox) beginning Aug. 17; approximately 1,800 district families already use the online food-payment platform. The business office noted that free-and-reduced eligibility carries over for the first 30 school days and that the district will send reminder notices two weeks before that 30-day carryover expires (Oct. 8, 2025, for the current cycle).

Audit and financial-controls updates included an earlier-than-usual audit scheduled Sept. 28–Oct. 3 and an open-item list of about 46 items; staff reported sending nine items immediately. The business office said it aims to present the audit for approval at the November board meeting and to complete a new internal budget book for internal use and multi-year planning.

The committee approved the June 11 finance committee meeting minutes by motion and second (mover and seconder not specified in the record).