Morrisville Borough SD board urges contingency planning as state budget remains unsettled

Morrisville Borough SD officials said Monday the district must prepare contingency plans as the state budget remains unsettled and federal funding issues could further strain local finances. Mr. May, speaking during the finance committee report, said smaller districts across the commonwealth are already dipping into reserves and the district is working on a budget timeline for 2026–27.

Why it matters: Without an adopted state budget or a resolution of federal funding disruptions, the district said it could face a window where its available funds become insufficient to operate normally. Mr. May told the board that, if needed, the district would have to consider options that could include providing two months' notice to employees in advance of temporary closures — a notice period he said would be discussed with solicitors.

Mr. May outlined the next steps the administration will take. "We will provide options for you to look at and collectively decide which direction," he said, and said department heads will be given flat or possibly reduced budget targets for next year while the district models different scenarios. He said special-education and facilities costs, which are harder to control locally, may rise regardless of other cuts.

Finance lead Miss Kennedy confirmed the district's transportation loan has been paid off and that the district has requested a bank letter to verify the payoff for its records. "The trans loan has been officially paid off," she told the board, and said she sent a confirmation letter from the bank to be attached to district files.

Board members discussed calendar and statutory deadlines tied to the Act 1 index. The chair noted the district's packet lists a Jan. 28 meeting date but said the statutory deadline to adopt any necessary resolution is Jan. 29, and urged the administration to confirm eligibility for exceptions and the amounts the district might be able to levy before that date.

The administration said it expects to bring more information to the board as early as next Wednesday and hopes to finalize a tentative plan before the Thanksgiving break. No formal budget votes were taken Monday; the board scheduled related motions for next week's business meeting.

Next steps: Administrators will present modeled options and a budget-development timeline at upcoming committee meetings. The board did not take formal budget action at this meeting.