PFM warns William Penn School District it will need continued state funding to avoid long-term deficits

Summary

PFM presented multiyear projections showing William Penn School District faces a $1.4M shortfall next year and larger long-term deficits unless state adequacy and tax-equity supplements continue; a scenario extending those supplements for five years largely eliminates the deficit, board to begin 2026 budget process in January.

Ian Tyson, a director at Public Financial Management (PFM), told the William Penn School District board on Dec. 5 that the district’s budget depends heavily on state funding and could face persistent deficits if recent adequacy and tax-equity supplements are not continued.

Tyson, who led a multiyear financial projection for the district, said local sources account for about 41% of the district’s total revenues while state sources account for a little under 60%, and that salaries and benefits make up over half of expenditures. “The kicker at the end will be that you do need that funding from the state to sustain yourself over time,” Tyson said.

The presentation modeled a conservative baseline that holds a $5,000,000 special carve-out flat at $5 million per year and assumes a lower, long-term Commonwealth funding level (roughly $300,000,000 statewide, allocated in the model as $250M through the BEF formula and $50M for special education). Under that baseline — which also factors in restoring staff and services cut in…

PFM warns William Penn School District it will need continued state funding to avoid long-term deficits

Summary

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