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Morrisville board warns state budget impasse is squeezing district cash flow
Summary
Superintendent Dr. Andrew Dosser told the Morrisville Borough School Board that a stalemate in Harrisburg could cut an estimated $800,000 a month in expected revenue, forcing tighter purchasing and prompting a TRANS application under Act 85 of 2016 to cover debt service needs.
The Morrisville Borough School Board was told the district faces near-term pressure on cash flow after the state budget stalled in Harrisburg.
Superintendent Dr. Andrew Dosser said on the board’s meeting that competing chamber proposals left both the House and Senate at an impasse and raised a “very real possibility of the state government being shut down” this fall. He told the board the district is currently without approximately $800,000 a month in expected revenue, a shortfall that is already forcing administrators to prioritize essential academic purchases.
The shortfall matters because the district relies on a mix of state reimbursements and local real‑estate tax receipts to cover recurring costs. Dosser said the district has received most real‑estate tax payments, which permits operations for the foreseeable future, but that continued uncertainty will affect purchasing, contract timing and projections for unplanned expenses.
Business manager Dan Kuboska told the board auditors have requested extensive historical data while completing the 2023‑24 audit, which has delayed the district’s final audit and continues to be reflected in the district’s credit rating. He said the district does not anticipate needing additional funding immediately but has informed PNC Bank that it may require assistance should circumstances change.
To manage cash-flow risk the administration has submitted a TRANS application under Act 85 of 2016 (a short-term tax and revenue anticipation note) to the Commonwealth. Kuboska said the district submitted necessary paperwork for that program and would use any approved window for debt relief; he also described missing an earlier Commonwealth payment window (Sept. 15–Oct. 1) and said the district would act on any future state payment windows.
Board members asked for clarifications about the audit timeline and borrowing capacity. Several members thanked administration for fiscal prudence and for limiting purchases to items tied directly to academics and student learning while the budget situation is unresolved.
The board will continue to monitor state budget action; no formal budget cuts or program eliminations were approved at the meeting.
