Finance office: general fund cash runway to April; board asked to approve Act 1 accelerated resolution
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Summary
Business office forecasted general‑fund cash to extend to about April and urged the board to adopt an accelerated Act 1 resolution (stating the district will not exceed the 4.3% Act 1 index) so the administration can finalize a budget on the usual schedule; scenarios show potential deficits of $1.1M–$4.1M under varying state/federal outcomes.
The Mill Creek Township School District’s finance office told the board on Nov. 10 that the district’s general fund cash position would likely sustain operations through roughly April if state and federal appropriations remain delayed, and recommended that the board approve an accelerated Act 1 resolution stating it will not raise taxes above the Act 1 index (4.3%).
Business manager Aaron O'Toole presented a condensed forecast and four scenarios: using the governor’s proposed state budget, holding state funding flat, and variations that include or exclude federal funds. Depending on the scenario, the district’s projected deficit for 2025–26 ranged from about $1.1 million (most favorable) to roughly $4.1 million (worst case). "For our general fund specifically, it's April," O'Toole said when asked when the district would run out of cash if budgets are not approved.
Why it matters: the board must decide whether to prepare a preliminary budget and seek a referendum exception (which would allow raising taxes above the Act 1 index for qualifying reasons) or adopt the accelerated resolution stating it will not exceed the index so the district can proceed with a normal budget schedule. O'Toole said preparing a preliminary alternative budget in time for the November cycle was not feasible and that an accelerated resolution is the pragmatic approach this month.
Other fiscal details: the administration projects an approximate $24 million in bond cash on hand, with $13.5 million already committed under contract, leaving about $10.1 million available for remaining bond projects; marquee signage and exterior restoration were among near‑term capital commitments. The business office also flagged child‑development and food‑service funds as more immediately vulnerable to federal funding delays, and said the district may consider short‑term credit or cash transfers depending on federal action this week.
Next steps: the administration will return to the board at the end of the month with recommended action on child development and to move several finance items to the full board for approval; O'Toole said he can provide a debt‑service schedule and more detailed cost impacts on request.