District finance presenter warns general fund cash could run out by April; pre-K fund faces near-term shortfall

The district's finance presenter told the Millcreek Township SD board that the district's general fund can cover operations only through about April if state and federal budgets remain unresolved, and that the child development (pre-K) fund could exhaust its cash by late November or early December without federal funding.

The presenter said the district has relied heavily on local revenues and that, as of the briefing, the general fund's cash position would extend payments to about April. "For our general fund specifically, it's April," the presenter said, stressing that if no budget is in place the district would face larger issues and might need to negotiate payment timing with vendors.

Why it matters: the child development program accounts for a substantial portion of a smaller proprietary fund; presenter estimated the program's budget near $980,000 with about $600,000 coming from pre-K counts. "We're in it right now, November, end of this month, early December, we're going to run out of cash out of that fund," the presenter said, and told the board the administration would request action under the superintendent report if federal funds had not arrived by that deadline.

The presenter ran four scenarios for fiscal 2025–26. Using a conservative governor's proposal, staff projected a deficit of roughly $1.4 million; with no state increase the deficit rose to about $1.6 million; combining the governor's proposal with half of expected federal funding produced a deficit near $2.6 million; and removing all federal funds created a projected deficit of about $4.1 million. The presenter said differences between some scenarios were moderated by Board policy 603, which directs that certain additional state allocations be transferred into the capital projects fund and addressed in the next budget cycle.

Board members pressed staff on several cost pressures and capital commitments. The presenter reported a $51,000 loss of interest income to date (projected through December) and rising personnel costs tied to increased unpaid days and retirees; professional-salary overages were estimated about $230,000 and sick-day payout was projected about $145,000 over budget. Enrollment was reported at 91 percent.

On capital spending, the presenter said the district held roughly $24 million in bond-related cash, with about $13.5 million already committed and approximately $10 million remaining for additional projects. Near-term items cited included marquee signage estimated at about $600,000 and exterior restoration costs of roughly $3 million net of a grant. The presenter also discussed the Gus Anderson field project, noting prior outreach to secure grant and bond money and a revised estimate of about $19 million; the presenter said a committed fund balance of roughly $5.4 million could help cover gaps.

A board member questioned the size and oversight of change orders. The presenter described a projected remaining change-order amount of $140,000 but acknowledged that total change orders across bond projects are higher and warranted closer attention. "Those are a lot more than $140,000. I think we got to kind of watch some of these change orders because they're pretty substantial every month," a board member said.

The board asked about borrowing to bridge the child development fund. Estimated interest-rate examples were discussed (participants suggested 6–10 percent in the exchange), and staff warned borrowing from the general fund would forgo interest income; staff also emphasized the child development fund is a proprietary fund separate from the general fund. The presenter said the district has an open line of credit with FNB and would bring recommendations to the board if federal funding had not arrived.

Next steps: staff said it will present a formal recommendation at the end of the month if the federal budget has not been enacted, will provide an update on the Gus Anderson field project and any fundraising or commitments, and will supply a separate debt-service schedule on request. No formal motions or votes took place during this item in the transcript.

The board also raised facilities issues (including an inaccessible handicap restroom) and asked for contractor follow-up; staff said it would pursue remedies and appropriate repercussions.

Ending: the presentation closed with the board reserving questions for further discussion and staff committing to follow-up briefings and a recommendation on short-term funding options for the child development program.