York City School District unveils preliminary 2025-26 budget as $8 million federal ESSER reimbursement is paused

Superintendent Dr. Berry presented the York City School District's preliminary 2025-26 budget on April 16, proposing a plan that she said does not use any fund balance and that requests new staff and program funding while flagging heavy uncertainty about state and federal grants.

The presentation laid out instructional priorities, safety upgrades and a long list of proposed new positions or restorations — including additional special education teachers, MTSS specialists, network leads, custodians and a full-time bus driver — and identified Ready to Learn and ACCESS billing reimbursements as major funding sources for many items. Chief Recovery Officer Dr. Fu told the board that the U.S. Department of Education has ordered a halt to spending tied to outstanding ARP ESSER reimbursement requests, affecting about $8 million the district had previously submitted for reimbursement.

The district said the proposed budget aims to sustain financial recovery and to avoid drawing on reserves. "The budget that I'm presenting you now is not using any fund balance," Dr. Berry said. She outlined priorities grouped under strategic fiscal management, organizational health, family and student supports, instruction and talent management and said the district will continue to pursue diversified revenue streams and long-term financial planning.

Why this matters: the plan relies in part on grants that are not guaranteed. Ready to Learn — a state grant the district received last year for about $8,000,000 — funds several personnel and programs in the superintendent's proposal; Dr. Berry cautioned that if Ready to Learn is not funded again, those positions would need to be reassigned to other revenue sources or cut. Separately, Dr. Fu said the federal pause on ARP ESSER reimbursements could remove another roughly $8 million in expected returns to the district.

Key proposed spending and funding notes - Ready to Learn: Dr. Berry said the district received about $8,000,000 through Ready to Learn last year and that many new or continuing items in the 2025-26 request are currently funded from that source. She warned the program's future funding is uncertain. - ACCESS: the school-based access billing program reimburses eligible health-related services; Dr. Berry said there is about $1,300,000 in the ACCESS account and proposed using ACCESS revenue to fund two special education population coaches (estimated cost $320,000). - Attendance officers: 2 at the high school and 4 at K–8, funded last year from Ready to Learn (previously funded from ESSER). - Staffing requests (selected): four additional special-education teachers (requested cost $640,000), three additional full-time custodians (approx. $210,000), one additional plant operator (approx. $140,000), one bus driver (approx. $55,000), one instructional technology teacher and three network leads to support school clusters. - Early childhood and after-school items: expansion of First 10 at two additional schools ($50,000), Bearcat Opportunity Program after-school funding moved into Ready to Learn, and full-day kindergarten funded in Ready to Learn.

Dr. Berry described a reorganization into three "network" teams (Dream It Forward; Schools of Innovation; Access and Opportunity Zone) with a network lead and network staff in each, intended to focus intervention, attendance and special-population supports at groups of schools. She said network leads are not supervisors over principals but are "side by side partners" to help principals and staff.

Federal reimbursement pause Chief Recovery Officer Dr. Fu told the board the U.S. Department of Education instructed districts in the affected cohort to "cease and desist any more spending immediately effective April 1." She said York City School District had already spent funds and filed paperwork for ARP ESSER reimbursement by the district's internal deadlines and that the district had submitted final evaluation reports in February. Dr. Fu said some districts were awaiting decisions and that officials planned to survey districts and pursue follow-up with state and federal officials. "We are now waiting to hear," she said, calling it a "wait and see type of game." She and Dr. Berry said they would update the board and consider contacting legislators about the hold.

Building space and Bearcat Cyber Dr. Berry discussed a potential purchase of a building currently used by the historical society to relocate Bearcat Cyber and a Bearcat Welcome Center. She said the building would not be a traditional school (playground and some functions would not be possible) but could provide dedicated space for cyber instruction and free up classroom space in schools. "If I can relieve some of those offices and put those classrooms over at that Bearcat Cyber building, it could free up as much as four classrooms," she said, noting that would translate into space for dozens of students.

Budget assumptions and tax scenario Dr. Berry told the board the proposed budget assumes level funding for IDA, basic education and special education formulas, and noted the Act 1 adjusted index for 2025-26 is 6.5 percent; the administration proposed a one-percent millage increase as a planning scenario. She emphasized the district's stated goal not to use reserves to balance the budget and said district staff are pursuing grants and private funding as supplemental revenue.

Votes at a glance (meeting actions related to agenda business) - Approval of March minutes: motion seconded; voice vote "Aye;" motion carries (minutes approved). - Consent agenda: motion and seconded to approve remaining consent items after board pulled items 8U, 8W and 8X for revision; voice vote "Aye;" motion carries (consent agenda approved with pulled items excluded). - Tabled items: motion to table items 8U, 8W and 8X until next month for committee review; motion carries (tabled). - Change of June meeting date: board moved and seconded to set the June board meeting for June 25; motion carries (date changed). - Adjournment: motion to adjourn moved and seconded; passed.

What board members asked for or directed - Dr. Berry asked finance staff (Sean) to provide a report from the ACCESS billing account to make billing and reimbursements visible to the administration. - Dr. Berry and Dr. Fu said they would consider writing to legislators and would notify the board by email regarding the status of the ARP ESSER reimbursements.

Context and next steps Dr. Berry said the proposed budget will be presented again and must sit for 30 days before final adoption; board members set a revised June meeting date (June 25) so the timeline fits the state-required 30-day period. The district is monitoring grant applications (Ready to Learn, 21st Century, Title I allocations) that remain uncertain and plans to prioritize instructional and special-population supports if funding is constrained.

Ending: The superintendent said the proposal represents a plan to stay out of financial recovery without using reserves and to target new resources toward instruction and student supports; officials said they will return to the board with updates on grant status and any resulting revisions to the proposed budget.