Pennsylvania School Districts Struggle Amid Prolonged Budget Stalemate

The Scranton School District seeks reimbursement of more than $6 million for salaries and benefits of staff who worked through the pandemic.

School districts across Pennsylvania are grappling with significant challenges as the absence of a state budget forces them to make tough financial decisions. From delayed repairs to frozen hiring, the Schuylkill Haven Area School District is just one example of how the impasse is impacting education statewide.

Superintendent Shawn Fitzpatrick expressed the widespread nature of the issue: “That is not where any district wants to be, certainly not one trying to provide stable, high quality education to our children. This is not just a Schuylkill Haven or even Schuylkill County problem. It’s a statewide problem.”

In the Scranton School District in Lackawanna County, the budget delay has put a halt to after-school tutoring and professional development activities. This is a direct consequence of the state being without a budget for over 100 days, as highlighted by Fitzpatrick and other education officials during a virtual press conference.

Political Deadlock in the State Legislature

Governor Josh Shapiro, during a recent visit to Lackawanna County, criticized the state Senate for its inaction in finalizing a spending plan. The ongoing stalemate between the Democratic-controlled House and the Republican-controlled Senate has withheld billions of dollars from schools. The Pennsylvania State Education Association reports that schools have missed out on $3.7 billion in expected state payments for the past three months.

Fitzpatrick noted the critical financial situation: “That uncertainty has already forced us into a discretionary spending freeze. Every nonessential line item, professional development, certain maintenance projects, non-emergency purchases all have been paused. Repairs that should have been addressed months ago remain unfinished, and we’ve delayed replacing some teachers lost to other school districts to preserve what funds we have.”

Struggles Facing School Districts

The Scranton School District, operating on a calendar-year fiscal budget, faces unique challenges. Superintendent Erin Keating explained the risks of borrowing money through a tax anticipation note, which would need to be repaid by the fiscal year’s end in December. “We’re really in a terrible position right now,” Keating said. “We’re hurting kids, and we’re hurting teachers. We’re not able to give kids all of the opportunities they would normally have … that is the worst decision that as a superintendent I can make, to take away something that gives a student an opportunity to do better, to academically achieve more.”




The Scranton School District seeks reimbursement of more than $6 million for salaries and benefits of staff who worked through the pandemic.

Sarah Hofius Hall

/

WVIA News

The financial stress is evident as the district’s fund balance, projected at $32 million in the preliminary 2026 budget, is rapidly decreasing. With monthly expenses of approximately $9.5 million for salaries and benefits, the district has paused spending on tutoring, after-school programs, and professional development.

Old Forge, another district in Lackawanna County, has taken out a $1.5 million tax anticipation note. Superintendent Christopher Gatto explained that the borrowed funds are used for salaries and benefits and essential operations like keeping the lights on, though it comes with interest costs. Gatto warned that if the impasse persists, even more difficult decisions could be necessary, noting, “It’s doing nothing but hurting the most vulnerable populations in the state.”

Latest News