Penn Manor board presses state lawmakers to resolve budget impasse as cyber‑charter and special‑ed costs bite

Penn Manor School District board members on Nov. 3 voted to move forward with a PSBA resolution urging the Pennsylvania General Assembly to end the state budget impasse, after administrators described immediate fiscal pressures tied to delayed state payments and tuition flows to cyber charter schools.

Chair introduced the resolution and said the board removed language about cyber‑charter funding from the draft so the resolution would focus strictly on urging the legislature to pass a budget. "Not all of our brethren across the commonwealth are in as good a financial shape that we are, and have had to start to borrow money in order to keep the lights on," the Chair said, calling the borrowing "criminal" in the sense that interest costs will fall on taxpayers. (The board removed broader cyber‑charter language from the PSBA resolution before advancing the budget‑passage request.)

Treasurer Mr. Forey told the board the district is owed approximately $11.65–$11.7 million by the state, and estimated the district is losing about $121 per day in interest earnings as a result of the unpaid funds. He also outlined preliminary 2024–25 results showing some revenue favorable items (transfer taxes, delinquent taxes, earned‑income tax) but an expense overrun of about $5.7 million driven chiefly by special‑education costs, higher health‑care expenses and maintenance/utility inflation.

Mr. Forey singled out the IU 13 special‑education contract process: the IU signs contracts based on estimated per‑student costs and then issues reconciliations and surcharges; a recent surcharge accounted for roughly $770,000 of the two‑year difference in billings.

Board discussion highlighted cyber‑charter tuition as a systemic cost pressure. The meeting record shows the district previously reported roughly 140–155 students enrolled in cyber charters; one slide indicated 155 cyber‑enrolled students cost taxpayers about $2.4 million in tuition. Board members and a public commenter, Leah Bacon, urged greater state legislative attention to cyber‑charter tuition formulas: Bacon summarized recent House proposals that would reduce cyber tuition costs statewide and asked board members to contact appropriations leaders.

The board moved and approved the PSBA resolution for submission; the tally recorded during the meeting was 6 in favor (with the transcript indicating divergent comments about process vs. policy). Separately, the board approved a motion to place a committed fund‑balance recommendation on the Nov. 17 agenda; that placement vote passed 8–0.

Administrators said they will return with updated interest‑loss calculations and further detail on cyber‑charter totals and special‑education costs. The board also directed staff to provide follow‑up answers on the financial items presented.

The district emphasized that, while revenues had some positive variances in 2024–25, special‑education and cyber‑charter tuition remain key budget risks going forward.