Tunkhannock Area SD superintendent warns of multimillion-dollar budget shortfall, urges state cyber-charter reform

Superintendent Doherty told the Tunkhannock Area School District Board of Directors that the district is facing a “pretty large multimillion dollar deficit” for the 2025–26 budget and that the administration has already trimmed the gap from roughly $3 million to about $2.4–2.5 million in a month of work.

Doherty said he spent a day in Harrisburg advocating for rural school districts and pressed legislators on three items he described as central to closing the district’s budget gap: reform of cyber-charter funding, an updated transportation funding formula, and greater basic and special education funding. He said cyber-charter costs make up a large portion of the district’s shortfall and urged parents and residents to contact state lawmakers.

Why it matters: board members were told that, without additional state action, the district will need to consider difficult choices during the June budget vote — including larger class sizes and cuts to student programs — and that using the district’s fund balance to cover recurring payroll would rapidly deplete savings meant for capital projects.

Doherty described the district’s cyber spending and in-house costs as an example. According to his remarks, the district paid roughly $3 million last year to outside cyber-charter providers for about 120 students; by contrast, the district’s in-house program (Fusion C3) serves roughly 84 students at an approximate cost of $290,000. Doherty said there is legislation in Harrisburg under discussion that would limit outside cyber charters’ charges to no more than the district’s internal cost in cases where the district runs its own cyber program; he added, “It would save us $2,700,000” if such a cap passed.

Doherty also pressed for transportation formula reform, saying the state formula has not been updated in decades and that current reimbursements place an outsized burden on local taxpayers and bus contractors. He encouraged contracted bus operators to contact state legislators about the formula.

Board members asked for more detail ahead of the June budget vote. One board member requested a breakdown showing the dollar impact of contractual wage increases and what those increases would equate to in mills, and Doherty said the administration will supply exact figures, including healthcare and retirement cost lines, before the next meeting.

Doherty cautioned that, although the district maintains a healthy fund balance intended for capital work (he said the board prefers to use reserves to renovate aging school buildings), those funds are not sustainable for covering ongoing operating shortfalls.

The superintendent closed by asking the community to contact local representatives about cyber-charter reform and rural school funding, saying local legislators had been receptive during his meetings in Harrisburg. The board expects final budget action at its June meeting.