District updates on February financials showing $7.8M revenue shortfall

The Scranton School District reported a balanced financial outlook for the early months of 2025 during its recent committee meeting. As of the end of February, the district has spent approximately $33.6 million, which is about 16% of its total budget of $225 million. This spending aligns with the expected financial trajectory for this time of year.

On the revenue side, the district has collected around $26 million, resulting in a temporary deficit of about $7.8 million. However, officials anticipate a shift in this trend as tax bills are being issued, with the first installment due by March 31. This period typically sees revenues begin to outpace expenses, a pattern that has been consistent in previous years.

Mister Laffick, the district's financial officer, noted that the district has not needed to issue a tax revenue anticipation note in recent years due to a growing fund balance and cash reserves. This has allowed the district to save on interest expenses.

Key highlights from the revenue report include a positive trend in payroll preparation tax collections, which are $260,000 ahead of last year, and a $150,000 increase in earned income tax collections compared to the same period last year. These figures suggest that taxpayers are adapting well to recent tax changes.

However, the district continues to face challenges with rising enrollment in cyber charter schools, which has increased from a budgeted 900 students to 1,030 this cycle. Current enrollment stands at 1,022, indicating a persistent trend that the district is monitoring closely.

Overall, the financial report indicates stability and a proactive approach to managing the district's budget as it navigates the early months of the fiscal year. The next financial update is expected to provide further insights as tax revenues begin to materialize.