Southmoreland board approves proposed budget, transfers $350,000 to cover cyber‑charter overage

The Southmoreland School District Board of Directors on May 22 approved a proposed final budget for the 2025–26 school year and voted to transfer $350,000 from the district’s unassigned fund balance to an assigned fund balance for cyber‑charter tuition costs.

The board approved a proposed balanced budget with $37,104,531 in revenues and $37,104,530 in expenditures. Business manager Pam Mordock and Superintendent Dr. Boone told the board the proposal reflects anticipated state and local revenue and an estimate for next year’s expenditures.

The budget discussion centered on rising cyber‑charter tuition costs. Mordock said the district has spent $1,800,433.53 so far this fiscal year on cyber charter tuition, “which is over our budget of $430,000,” and described outreach she and Dr. Boone made in Harrisburg to seek funding changes. She said district staff project a continuing impact and that the proposed budget accommodates additional adequacy funding where possible.

Board members debated the timing and amounts of fund transfers. Mordock reported that earlier in the month the district saw an overage of $271,966.84 and that, after payments processed on May 22, the current overage climbed so that the assigned cyber tuition balance would fall to about $80,003.73 if all transfers were not made. She said she had recommended transferring $350,000 to limit the draw on remaining reserves.

The board approved the transfer by roll call vote, 7–2. Those voting no voiced concern about using fund balance to pay current‑year obligations and urged caution about drawing down savings before the end of the fiscal year. The proposed final budget passed on a separate roll call later in the meeting, 6–3.

Mordock told the board that the district’s revenue mix is heavily state dependent (55.2% state funding, 42.7% local, 2.1% federal) and that cyber‑charter costs have risen after PDE (Pennsylvania Department of Education) changes to tuition calculations. She said she and Dr. Boone had personally lobbied legislators in Harrisburg to press for cyber‑charter reform.

Board members asked about contingency plans and suggested continued advocacy at the state level. Mordock said she will continue to monitor invoices and provide updated fund‑balance reports to the board. The board’s approval of the proposed final budget does not finalize taxes; administrators noted figures could change before final adoption.

The vote followed more than an hour of budget questions, including inquiries about line‑item changes, debt service and consortium budgets. The board also approved related budget items during the meeting, including the CWCTC budget and several personnel and contract items that affect the district’s 2025–26 expense projections.

The board will present the proposed final budget publicly as required before taking a final vote in June.