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Penn Cambria School District preps for impasse fallout

Districts may not get funding until 2026 if no budget by Thanksgiving

CRESSON — If the state doesn’t pass a budget by Thanksgiving, school districts likely won’t have their state funding until 2026, Penn Cambria solicitor Ron Repak told district officials during Tuesday’s board meeting.

While giving his report to the board, Repak said he was “not hearing good things out of Harrisburg” regarding the current budget impasse, which has been ongoing for more than 100 days.

According to business administrator Jill Francisco, Penn Cambria has enough money in its general fund account to sustain operations through the end of December, should the impasse continue into 2026.

As of September, the district’s general fund had about $13.5 million in cash and investments, Francisco said, noting monthly expenditures for operational costs, payroll and benefits range from $1.8 million to $2.3 million.

Borrowing options are currently being considered to ensure the district can continue to operate through the second half of the fiscal year if the state budget is not passed in time, Francisco said.

During Tuesday’s board meeting, Penn Cambria officials announced they plan to discuss a potential cash flow item at the November committee of the whole meeting.

Francisco said the district will likely implement temporary spending restrictions for nonessential items and allow money to be spent on critical items only.

“This means that any purchases outside of essential items or services required for daily operations and student safety will be temporarily postponed,” Francisco said.

Hiring freezes and program cuts have been discussed within the district; however, no official decisions have been made, Francisco said, noting officials will continue to discuss potential cuts as the state budget impasse progresses.

After the meeting, Superintendent Jamie Hartline said that not having a state budget leads to “a lot of uncertainty” for the district.

“The whole situation is disappointing,” Hartline said of the impasse, noting district officials “work very hard” to be fiscally responsible and efficient.

“When you deal with some of the circumstances that we’re having to deal with, from a financial standpoint, it’s disappointing,” Hartline said.

Mirror Staff Writer Matt Churella is at 814-946-7520.

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