Pennridge board says delayed state budget has left about $9 million unpaid; board adopts Act 1 opt‑out resolution

Pennridge School District officials told the board Oct. 14 that the district’s finances are under pressure because the state budget approval is delayed. Superintendent Dr. Barrios said the district normally would have received over $9,000,000 from the state as of the end of the month and estimated the district is missing about $36,000 to $40,000 per month in interest earnings while funds are unavailable.

Board members moved to monitor the situation and directed the finance department to provide regular updates to the finance committee. At the meeting the board approved a 2026–27 Act 1 accelerated budget opt‑out resolution, which authorizes the district to exceed the state’s Act 1 index (3.5% this year) if needed; district staff said they do not currently expect to exceed the index but sought the flexibility. The motion passed on a voice vote.

The board also heard a request during new business to add to the next finance committee agenda a proposal some districts have adopted to withhold a percentage of cyber‑charter payments (a 25% withholding figure was discussed) as a temporary cash‑flow strategy while state aid is delayed. Several board members expressed interest in reviewing the legal and fiscal implications; no formal vote on that proposal took place and the item was proposed for committee discussion.

Board members said they will continue to evaluate short‑term cash management options while the finance committee monitors state action and provides updates to the full board.

(Reporting note: Dr. Barrios reported the $9,000,000 and the $36,000–$40,000/month interest figure during his superintendent’s report.)