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Board hears state budget proposals and district financial outlook; cyber‑charter tuition identified as major pressure
Summary
District staff reviewed Governor Josh Shapiro’s proposed education budget and Northwestern Lehigh’s preliminary calculations, and told the board that cyber‑charter tuition and out‑of‑district special‑education placements remain significant budget pressures.
District finance staff presented an update on state budget proposals and the district’s 2025–26 budget planning, flagging cyber‑charter tuition and out‑of‑district placements as major pressures on the Northwestern Lehigh School District budget.
Staff summarized elements of Governor Josh Shapiro’s proposed education budget, describing proposed statewide increases including a proposed $75 million increase to the basic education funding formula and a $40 million proposed increase for special education, along with larger proposed investments in “adequacy and tax equity” and school facilities grants. District presenters attributed specific proposed increases to the governor’s plan and noted the amounts are proposals that require legislative action.
The presenters said the district’s preliminary calculation shows a projected local increase of $44,452 in basic education funding and $63,915 in special education funding under the governor’s proposal — a combined total increase of $108,367 for Northwestern Lehigh, pending final state action.
At the same time, finance staff cautioned that the district will not benefit from the largest proposed adequacy and tax‑equity payments because those allocations target districts with lower local wealth. “Our current expenditure per weighted student is $20,900 while their target is $14,120,” a staff presenter said, summarizing why the district ranks above the threshold for the targeted aid.
Board members and staff discussed district expenditures that leave local classrooms, including payments for career and technical programs, cyber and charter school tuition, and out‑of‑district special education placements. The finance presenter reported roughly $3.5 million in tuition payments for regular‑education students attending external providers and about $2.3 million in payments for special‑education placements outside district staff — roughly $5.9 million combined for the 2023–24 year in the categories shown.
Cyber‑charter tuition was identified as a particular pressure: the presenter cited roughly $655,000 in payments to cyber charter schools for the most recent year and more than $2 million in total payments for charter and cyber placements overall. Finance staff noted the state’s statutory tuition calculation can yield wide variation district‑to‑district and that a proposed state‑level change to define cyber tuition could materially affect district finances.
Staff detailed other budget drivers the board will consider: projected electricity and fuel costs, new instructional materials (a $270,000 estimate for science materials to align to state standards), and anticipated LCTI tuition increases. The presenter said worker’s compensation costs are expected to decrease, producing a modest savings.
Next steps: staff will continue to refine staffing plans and building budgets and present a proposed final budget at the May workshop and a formal budget adoption in June if state actions and local decisions permit.
Financial context and numbers in this article are taken from the board presentation and staff comments at the meeting; many state items described are proposals and depend on legislative action.
