A district finance presenter told the Cheltenham School District finance committee on Dec. 2 that the recently approved state budget produced material changes the district had not budgeted for. The presenter said the district has collected about $112,000,000 in local, state and federal revenues through November, down from about $115,000,000 the prior year, largely because some federal and other state monies arrived late.

The presenter said the state added $1,100,000 to the Ready-to-Learn foundation grant this year and approved an additional $1,100,000 for the following year. “One $1.1 million can be used to offset tax increases,” the presenter said when explaining how the tax-equity provision works, noting guidance on eligible uses and application processes from the state is still forthcoming.

The presenter also described a change to the charter-school reimbursement and tuition formula. Because many of the district’s charter-enrolled students attend cyber charter programs, the altered formula is expected to reduce the district’s charter tuition estimate by roughly $437,000 compared with last year’s figure, the presenter said. Board members asked whether special-education tuition caps or full formula details were still unresolved; the presenter said special-education details remain incomplete.

Why it matters: The combination of late federal funds, an unanticipated ready-to-learn allocation and changes to charter reimbursement affects the district’s projected revenues and the board’s tax decisions. The presenter reminded the committee the board will consider an Act 1 opt-out resolution (the annual decision that determines whether the district will limit tax increases to the state’s Act 1 index) on the Dec/Jan calendar; accepting certain tax-equity funds requires adopting that opt-out.

What’s next: The presenter said the district is awaiting state guidance on application and spending rules for the added Ready-to-Learn funds and will present the opt-out resolution for board action before the statutory deadline.