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Governor's proposed 2025–26 budget would add revenue to Northern Lehigh; officials warn of federal funding risk
Summary
Business office told the board the governor's budget proposals could net roughly $381,000 for Northern Lehigh if passed, but district staff cautioned that the loss of about $900,000 in federal funding would create a significant shortfall affecting teacher salaries.
Mala Torres, the district business office representative, summarized key elements of Governor Shapiro’s 2025–26 budget proposal and explained how the package could affect Northern Lehigh School District finances if enacted.
"Basic ed funding, we would receive an additional $276,000 in revenue," Torres said. She also listed other proposed state items: about $24,000 from a Ready to Learn block grant, an $81,000 increase in special education funding, continued funding for PCCD safe‑schools initiatives, and a proposed cap on cyber charter payments at $8,000 per student. The governor's budget also proposes a $1 billion Homestead/Farmstead allocation that could translate into a district‑level per‑resident benefit depending on applications and approvals.
Torres cautioned the board about federal funding dependence. "Northern Lehigh receives approximately $900,000 a year in federal funding. If federal funding goes away, we are going to be short $900,000 in our budget, which is used to pay teacher salaries," she said, stressing that most federal funds flow to salaries and related personnel costs.
District leaders noted that the state budget figures are proposals and must pass through the legislature; the board was reminded that federal programs (Title I and other grants referenced) remain subject to separate federal decisions that could change the district’s funding picture.
The business office also reminded board members about the district’s prior decision to use a tax‑equity supplement to offset debt service and that some program funding (PCCD safe schools, Homestead/Farmstead) depends on program rules and applications that vary by household.
Context and implications: If the governor’s proposals are enacted largely as presented, the district would see incremental state revenue increases. However, the business office emphasized the larger fiscal exposure if federal funding streams were reduced or eliminated, which the district estimates would create a multi‑hundred‑thousand‑dollar shortfall and require budget adjustments or reserve use.
Next steps: The board will consider the district’s budget in upcoming meetings and monitor legislative movement on the governor’s proposal; staff stated they will report back with any legislative changes that alter the district’s revenue forecast.
