Spending freeze discussed due to budget stalemate
LEWISTOWN — The Mifflin County School Board of Directors Thursday discussed a potential spending freeze for the Mifflin County School District due to the current state budget impasse.
Superintendent Vance Varner shared that the Pennsylvania House of Representatives passed a $50.25 million state budget outlined by the Governor’s Office of the Budget in a letter sent to the District on Oct. 20.
The letter explained that the district would receive $3.1 million in additional funding and savings from cyber charter school funding reform, according to the House budget bill.
Melinda Kenepp, the district’s chief financial officer, clarified that the House is trying to work on a formula to lower the cost that districts pay to cyber charter schools.
Varner added that the Pennsylvania State Senate also passed a budget of $47.9 billion, meaning the state budget is stalled due to the budget gap.
Varner said, “The administration is going to start having some discussions, all on essential spending.”
Varner stated that the administration is strongly considering spending freezes and suspending attendance at non-mandated professional development, conferences and other related expenses.
He shared that the school board would again discuss this suspension after 30 days, if it was to go into effect.
This consideration comes after the board’s Oct. 16 discussion that the lack of a state budget means the district received $1.7 million from the state property tax with an $8 million shortfall in all other funding the board normally receives from the state.
Kenepp stated at the Oct. 16 meeting that by Sept. 30 last year, the district collected $9.5 million in state revenue.
Kenepp shared Thursday that some districts have had to forgo paying the state portion of the charter school bill.
Kenepp stated that this process “gets messy when the money starts flowing.” Districts that forgo this payment must go through a reconciliation process with the Pennsylvania Department of Education.
Kenepp added that if the district doesn’t receive its state allotment by January, it might have to forgo payment of the state portion of the charter school bill.
Varner then stated that the District may secure loans to avoid later budget gaps.
The Board will meet next on Thursday, Nov. 20.


