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Bethlehem Area SD warns state budget impasse could force short‑term borrowing and deepen structural deficit
Summary
School finance staff told the board that delayed state aid and shrinking federal streams could force the district to use $5.7 million of fund balance and seek short‑term borrowing in January if Harrisburg does not deliver a budget, and called for multiyear budgeting to avoid a structural deficit.
Finance staff presented a budget update Nov. 10 to the Bethlehem Area School District board that described a volatile revenue picture driven by an unresolved Pennsylvania state budget and constrained federal funding.
The presentation, delivered by the district finance presenter, said the 2025–26 budget was built assuming 100% of the governor’s basic and special‑education proposals and 50% of an adequacy change, and that the district plans to use $5,700,000 of fund balance to balance the current budget. The presenter warned that because a state budget has not been enacted, some state aid is delayed and ‘‘we have over 33,000,000 in funding that’s delayed as a result of the budget impasse.’’
Why it matters: Local…
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