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Finance committee notes Act 1 index at 3.5% and warns of state budget impasse impacts
Summary
Staff reported the Pennsylvania Department of Education certified a 3.5% Act 1 index for 2026–27 and that the ongoing state budget impasse (noted as day 106) has delayed roughly $4.1 million in payments; Radnor staff said reserves allow continued operations but other districts are experiencing cash stress.
Radnor Township School District finance staff told the committee the Department of Education certified the Act 1 base index for the 2026–27 budget year at 3.5 percent, the average of statewide average weekly wage and the employment cost index used to set local tax‑increase guardrails.
Staff also reported the Commonwealth remained in a budget impasse, which they identified as "day 106," and said the district had not received roughly $4.1 million in expected state disbursements. "We are currently on day 106 of the budget impasse," staff said, adding that the district can meet payroll and other obligations using reserves but that some Pennsylvania districts have been forced to borrow to bridge shortfalls.
Committee members asked whether the state earns interest on funds it is holding; staff replied that the state does earn interest on withheld funds and districts generally do not receive adjustments for those interest earnings. District staff said the local budget has been built conservatively and that ongoing monitoring and statewide advocacy (via PASA, PASBO and other associations) continue as the impasse persists.
The committee did not adopt a new policy at the meeting; staff said they will continue to monitor the situation and report updates to the board and public.
