Quakertown Community School District’s finance committee on Oct. 9 outlined potential budget stress from state and federal funding delays and asked for board guidance on contingency steps including interest-free loans and a possible pause or proportional reduction of charter-school payments.

Dawn (business office staff) told the committee the district budgeted $36.3 million in state revenue for 2025–26 but has not received nearly $9.7 million of that amount yet; she estimated the lost interest on those funds at about $80,000. The state budget remained unresolved, and staff said they did not expect a passed state budget or payment by Oct. 31. Committee members discussed the option of the district applying for an interest-free loan to cover timing gaps; staff agreed to research eligibility and bring details back to the board.

Committee members also discussed federal funding effects. Staff said certain Title grants had been frozen earlier and that the federal government’s continuing resolution and shutdown were now preventing routine disbursements; food-service reimbursements were guaranteed only through September and could stop during the shutdown. Staff estimated the district could face about $200,000 in unreimbursed general-fund costs tied to food-service and other federal reimbursements if payments remain delayed.

Charter-school payments were flagged as a pressure point. Staff said the district typically sends about $325,000 per month to charter schools and that year-end reconciliations will require roughly $1 million in additional payments. The committee discussed drafting a resolution—similar to one passed by Bethlehem Area School District—that would reduce charter payments proportionally to the share of state funding withheld from the district (Bethlehem’s example used 30%). Staff agreed to calculate the proportional percentage and prepare a resolution for board consideration rather than unilaterally withholding funds.

Other items discussed included: an annual agreement with the Bucks County Intermediate Unit to issue homestead/farmstead notices (the contract was described as approximately $1.00 per notice, with the district estimating an annual cost around $4,300); the Act 1 index for 2026 budgeting (the index was announced at 3.5% and the district did not qualify for an adjusted base index); and ongoing audit timing risks because the federal Uniform Guidance for single audits had not been issued to auditors. Staff said the district must file its annual financial report by Oct. 31 and that the audit is due Dec. 31 (with a common extension to Nov. 30); the formal EMMA filing that requires an audit is due March 31.

Dawn presented a fund-balance calculation showing about nine months of operations in reserve after excluding budgetary reserve and expected state and federal revenues. Committee members said they would manage invoice timing and prioritize payments to avoid harming coverage or credit while continuing to press for state reimbursements.

The committee asked staff to investigate interest-free loan programs, to prepare calculations and a proposed charter-payment resolution for the next board meeting, and to keep the board updated at the November finance meeting. The committee approved routine meeting business (minutes) and adjourned by voice vote.