District says it can last about three months without state funds; board approves withholding cyber charter payments

The Southmoreland School Board was told Oct. 21 that ongoing state budget impasses threaten district revenue and the business manager said the district—s cash position could likely last "another three months" without a Tax Anticipation Note.

The business manager (Speaker 13) told the board she has prepared paperwork and can submit a TAN application to FNB in November if state funding is not passed; the bank would compute the amount the district can borrow and the district would not necessarily activate the loan for up to 90 days after approval.

Board members pressed for timelines and amounts. The business manager said she could provide the exact borrowable amount after consulting the bank and would bring any formal TAN request back to the board for approval.

Separately, the board approved a resolution to withhold cyber charter payments until state funding is restored. Board members discussed the possibility that cyber charter providers could theoretically pause services but noted common practice across districts is to withhold payments short term and reconcile through state subsidy adjustments or later payments. A board member asked, "If the cyber school payment is not made, does the cyber school have the right to discontinue its program?" (Speaker 8). Counsel and administration said students could be re-enrolled in district programs if necessary and that cyber charters typically pursue payment via subsidy adjustments.

The board also voted to postpone cyber charter payments and to continue monitoring cash flow and the state budget; the business manager will return with figures if a TAN becomes necessary.