Elizabethtown Area SD warns of cash strain as state budget impasse holds back reimbursements
October 30, 2025 | Elizabethtown Area SD, School Districts, Pennsylvania
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Elizabethtown Area School District finance staff told the school board on Thursday that unpaid state and federal funds are producing immediate cash‑flow pressure and a possible need to borrow if a state budget and federal reimbursements do not arrive.
Mr. Strickler, the district’s finance presenter, told the board that “we are owed, as of today, for plan con, a $198,000” and that the state’s PlanCon reimbursements are paused until a full state budget is passed. He also warned that the district must make a $3.1 million bond payment next week and cannot defer that obligation.
Why it matters: the withheld reimbursements and uncertain federal payments for meal programs reduce money the district expected this fall and increase the risk that administrators will need to seek short‑term borrowing to meet payroll and vendor payments.
Strickler presented unaudited figures showing a general‑fund balance near $5.7 million and capital projects of roughly $23.7 million, much of which he said represents bond proceeds that must be spent by May 2027. “If we’re at $5.7 million, 2025‑26 budget is a $1,500,000 shortage without salaries…we’re about $2.5 million short, which is going to take us down to a $3,200,000 fund balance,” he said, adding that the district is below typical practice for reserve levels and that he has asked PASBO to review the numbers.
The presentation noted several near‑term risks and timing items: the Pennsylvania Department of Education (PDE) has informed districts that PlanCon payments are not being made until a budget is enacted; the district received a PDE notice that October free/reduced meal reimbursements would be paid but said it does not know whether November payments will arrive; federal eligibility changes for some families will create temporary free/reduced classifications that increase administrative workload; and the single (federal) audit required for federal funds is delayed pending federal guidance.
Board President Steven Lindemuth and administrators urged patience but stressed the urgency of the timing. Strickler said the district is “still good” on cash through February under current projections but that borrowing discussions should begin late December or early January if the impasse continues. He recommended continued close monitoring and additional action when administrators bring budget options to the board.
The board adopted a PSBA resolution at the same meeting urging the governor and General Assembly to pass a full budget and release appropriated funds; that resolution passed on roll call.
Where things stand next: administrators will continue the 2026‑27 budget process, prepare alternatives for the board in December, and update the board if federal or state payments are received earlier than expected.
Mr. Strickler, the district’s finance presenter, told the board that “we are owed, as of today, for plan con, a $198,000” and that the state’s PlanCon reimbursements are paused until a full state budget is passed. He also warned that the district must make a $3.1 million bond payment next week and cannot defer that obligation.
Why it matters: the withheld reimbursements and uncertain federal payments for meal programs reduce money the district expected this fall and increase the risk that administrators will need to seek short‑term borrowing to meet payroll and vendor payments.
Strickler presented unaudited figures showing a general‑fund balance near $5.7 million and capital projects of roughly $23.7 million, much of which he said represents bond proceeds that must be spent by May 2027. “If we’re at $5.7 million, 2025‑26 budget is a $1,500,000 shortage without salaries…we’re about $2.5 million short, which is going to take us down to a $3,200,000 fund balance,” he said, adding that the district is below typical practice for reserve levels and that he has asked PASBO to review the numbers.
The presentation noted several near‑term risks and timing items: the Pennsylvania Department of Education (PDE) has informed districts that PlanCon payments are not being made until a budget is enacted; the district received a PDE notice that October free/reduced meal reimbursements would be paid but said it does not know whether November payments will arrive; federal eligibility changes for some families will create temporary free/reduced classifications that increase administrative workload; and the single (federal) audit required for federal funds is delayed pending federal guidance.
Board President Steven Lindemuth and administrators urged patience but stressed the urgency of the timing. Strickler said the district is “still good” on cash through February under current projections but that borrowing discussions should begin late December or early January if the impasse continues. He recommended continued close monitoring and additional action when administrators bring budget options to the board.
The board adopted a PSBA resolution at the same meeting urging the governor and General Assembly to pass a full budget and release appropriated funds; that resolution passed on roll call.
Where things stand next: administrators will continue the 2026‑27 budget process, prepare alternatives for the board in December, and update the board if federal or state payments are received earlier than expected.
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