Finance committee considers withholding 34% of charter-school payments amid state budget impasse

The Whitehall-Coplay School District finance committee discussed a proposed resolution to withhold approximately 34% of charter-school payments while the Pennsylvania state budget impasse remains unresolved.

Mr. Millet, a district staff member presenting the item, said the resolution mirrors language circulating among several districts and would reduce charter payments by 34% in the near term. Millet said the change would affect “about approximately 4,400 students” and equates to about $6.5 million, which he described as roughly $184,000 per month in withheld payments. He recommended pursuing the resolution so the district would hold funds until it receives its state basic education payments; once the state budget passes and the district receives its first basic-ed payment, Millet said the district would resume full payments to charter schools.

The resolution’s text calls on the General Assembly to end the budget impasse and asks that copies be sent to the General Assembly, the Pennsylvania Department of Education and neighboring school districts. Board member Malay asked whether there would be any negative legal consequences; members noted they were not aware of specific enabling legislation and characterized the measure largely as a financial/political stance. A neighboring district that previously adopted a similar resolution reportedly told superintendents that some charter operators preferred a percentage payment over receiving nothing.

Mr. Millet said the resolution would be brought back for action at the next meeting in two weeks; no vote was taken at this meeting.

Next steps: the committee will place the resolution on the agenda for a future vote pending further discussion and legal clarification.