Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Finance topic
No spam. Unsubscribe anytime.
Audit shows small operating deficit as state increases adequacy funding for Downingtown Area SD
Summary
District finance staff reported a roughly $1.84 million operating deficit for 24/25 and projected a $21.12 million general fund balance rolling into 25/26; state Ready to Learn adequacy funding will phase in to close a $9.2 million gap over 8–10 years, with modest increases to basic and special education funding.
The Downingtown Area School District reported preliminary audit figures and described how the recently approved state budget will affect district revenue. Brian, a district finance staff member, said the general fund for 24/25 showed revenues of about $288,838,089 versus a budgeted $284,677,000 and operating expenditures of roughly $282,338,873, leaving a net operating deficit of approximately $1,838,000.
"Taking that away from the beginning fund balance of $22,960,000, we're left with a fund balance of $21,121,000 rolling into the '25–'26 school year," Brian said. He added that the audit return was coming back clean and commended Mike DeAngelis and his team for their work.
On capital spending, the district reported roughly $47 million in construction expenditures tied to Beavercreek and West Bradford projects, plus operating transfers in from the general fund; after paying open invoices the capital projects fund is expected to have about $3.5–$4.0 million remaining.
Superintendent Doctor O'Donnell asked staff to map the state budget changes to district impacts. Brian said the state is prioritizing the Ready to Learn Adequacy Supplement to close an estimated $9.2 million adequacy gap for Downingtown over an 8–10 year phase‑in. For 24/25 the district's basic education allocation was about $19.0 million (an increase the presentation listed as $281,832 or roughly 1.45%), while special education funding rose by about $503,000 (around 7.3%). Brian said the district had conservatively modeled part of that expected state funding into its projections, so the new revenue largely aligns with prior planning.
Board members asked how much of the district's savings reflected changes to cyber charter tuition calculations. Brian said a revised formula will reduce what the district pays to cybercharters by an estimated $133,000 for 25/26, though the state also discontinued a $175,000 transition reimbursement, producing a modest net effect this year.
The board discussed these figures without a recorded formal vote in the committee transcript. Staff said the formal audit report will be placed on a future board agenda when it is received.
