BETHLEHEM, Pa. — Bethlehem Area School Board and the district’s administration on Monday discussed withholding some charter school tuition payments amid the state budget impasse.
Legislators in Harrisburg have yet to pass a budget for the current fiscal year, making it more than two months late. Budget approval was due June 30.
Though some reports say a state budget deal is imminent, BASD is developing contingency plans in case it must continue operating without state funding in the months ahead.
“One particular area of frustration is our payments to charter schools."Jack Silva, Bethlehem Area Superintendent
State funding accounts for about 30% of the district’s revenue.
BASD Superintendent Jack Silva said at a school board committee meeting Monday there’s “a growing frustration” among district administrators and school directors across the state, “especially as expenses continue for school districts while state funding hasn’t come in.”
“One particular area of frustration is our payments to charter schools,” Silva said.
Withholding charter school payments
Charter schools “don’t seem to have the issue of waiting and having their funding delayed because it comes from the contributing districts that are still writing the checks,” Silva said.
He said his administration could recommend a resolution to the school board as early as next month that would let BASD temporarily withhold 30% of the funds it sends to charter schools that Bethlehem Area students attend.
“There aren’t a whole lot of tools at our disposal."Jack Silva, Bethlehem Area Superintendent
The resolution would sunset once a budget is passed and backpay would be sent to the schools at that time.
The resolution would support the idea that “everybody has shared sacrifice during a budget impasse,” Silva said.
BASD pays $3.5 million to $4 million in charter school tuition each month.
The potential resolution is an option being discussed by districts throughout the state, Silva said.
“There aren’t a whole lot of tools at our disposal,” he said.
Under regular circumstances, the state deducts missed charter school tuition from a school district’s state subsidies.
But with the budget impasse, the district isn’t getting any subsidies, “so there’s nothing to deduct it out of,” Silva said.
Contingency plans
As a cost-saving measure, school Director Karen Beck Pooley raised the possibility of BASD delaying the fulfillment of various compliance obligations and reporting mandates that come from the state.
Without state funding, BASD isn't getting the resources to implement those requirements, Beck Pooley said.
“Right now, [local] taxes are coming in so we’re in a healthy position. Taxes aren’t going to keep coming in past December.”BASD Chief Financial Officer Harry Aristakesian
Additionally, she said she’s “annoyed” by the delay in state funding.
BASD Chief Financial Officer Harry Aristakesian said if a state budget isn’t passed by October, that’s when the district should start being “worried” about potentially needing to take out loans to cover costs. Securing financing takes a few months, Aristakesian said.
“Right now, [local] taxes are coming in so we’re in a healthy position,” he said. “Taxes aren’t going to keep coming in past December.”
He also said the district has savings to rely on if necessary.
Additionally, there’s the potential Bethlehem Area could get $3.5 million when it sells a South Bethlehem property at 315 Columbia St. to Bethlehem Area Vocational-Technical School for use as a satellite campus.
“We’re going to cast a pretty wide net and see what option works best as we evaluate next steps,” Aristakesian said.
BAVTS MOU
At the same committee meeting, the Bethlehem Area School Board discussed an updated memorandum of understanding for a BAVTS facilities project.
The MOU clarified the scope of the project to include both renovations at The Factory building, which will serve as the BAVTS satellite campus, and at the technical school’s main campus at 3300 Chester Avenue, Bethlehem Township.
The updated agreement provides flexibility in how the sending school districts can pay for the project, such as through a lump sum or periodic advance payments.
In addition to Bethlehem Area, the BAVTS sending districts are Northampton Area and Saucon Valley.
Bids for the BAVTS facilities project are due to be received by December. Construction work will begin in early 2026 and is slated to be completed by that fall.
