Cornwall-Lebanon School District officials told the board during their November work session that the ongoing Pennsylvania state budget impasse has delayed roughly $11.6 million in state subsidies the district expected this fiscal year, and recommended moving forward with an Act 1 opt‑out resolution that would limit the district’s budget increase to the district’s 4.4% adjusted index.

Speaker 2, the district finance presenter, said the impasse — described as more than 120 days old — has held back state subsidies that make up a large portion of the $34 million the district expects in state funding. "We're looking at 11,600,000.0 in subsidies that we have not received and we would have by now," Speaker 2 said. He warned the district could feel the effects of the impasse more acutely in February or March if the delay continues.

Administration recommended the board adopt the opt‑out resolution to "not exceed the Act 1 index" (the adjusted index reported in the presentation was 4.4 percent) and to place that resolution on the agenda for an upcoming meeting so the district meets required timelines. Speaker 2 explained the opt‑out does not set a final tax rate or proposed budget; it only preserves the district’s ability to avoid a referendum required if the district exceeds the index.

Board members questioned whether receiving less than anticipated from the state would change the district’s position on the opt‑out; Dr. Dimencic (Speaker 3) said administration would need to "figure it out" based on final state numbers and described the preliminary-budget route as impractical given the uncertainty. Multiple board members and staff noted the district’s conservative budgeting approach and the difficulty of preparing a valid preliminary budget without state figures.

The administration also flagged other budget pressures discussed in the presentation, including increased third‑party cyber charter tuition liability, rising employer retirement rates (PSERS), and capital-project needs tied to a planned bond issuance in the spring to fund campus work.

Next steps: administration recommended placing the Act 1 opt‑out resolution on a near-term agenda for board consideration (the presentation suggested next week or the December reorganization meeting as options) and preparing a proposed final budget later in the spring when state figures are available. No formal vote on the opt‑out resolution was recorded at this meeting.