McGuffey board adopts $7 million tax‑anticipation note as state delays education funding

The McGuffey School Board on Tuesday adopted a resolution authorizing the business administrator to secure a $7,000,000 tax‑anticipation note to cover district cashflow while the Pennsylvania state budget and related education subsidies remain unreleased.

Charlene Hoverchock, the district business administrator, told the committee the district ended fiscal year 2024‑25 with $37,300,000 in revenue and $35,600,000 in expenditures, leaving a net positive balance of $1,700,000. She said those reserves have already been used to bridge early fiscal‑year costs because the state has not released basic education, special education or transportation subsidies this year.

“Our total revenue ended up being 37,300,000.0,” Hoverchock said during a presentation. “We will be asking for a $7,000,000 basically tax anticipation note.” The resolution (No. 2025202601) authorizes Hoverchock to sign and secure the note with Community Bank; the note is due May 31, 2026 and the interest rate will be set at closing.

Hoverchock also highlighted cyber‑charter tuition as a budget pressure: McGuffey paid approximately $1,778,000 for cyber‑charter students in 2024‑25, with the district’s average daily membership cost cited at about $14,400 for regular education and more than $30,000 for special education students. She said a statewide proposal to standardize cyber‑charter payments at $8,000 per student would save the district roughly $600,000 annually.

Board members discussed the mechanics of the tax‑anticipation note and the urgency created by the state delay. The board’s motion to adopt the resolution passed by voice vote after the resolution text was read aloud and members were reminded the district had approved exploring a line of credit at a prior meeting.

Votes at a glance: The committee approved the tax‑anticipation note resolution, approved a three‑year renewal with Velocity EHS, and took routine consent actions including bills, personnel appointments and several MOUs. Specific votes on personnel and routine contracts were taken by voice vote during the meeting.

Why it matters: With state education funding withheld pending enactment of the Pennsylvania budget, local districts across the state are being forced to use reserves or short‑term borrowing to cover payroll and operating expenses. The board said the note is a one‑year bridge intended to be repaid once state subsidies are released.

The board adopted the measure and instructed administration to proceed with securing the note. The district will provide further public information about the note terms once finalized at closing.