Pa. School Districts Debate Use of Reserve Funds

Courtney Williams's picture
Tuesday, May 15, 2012

At East Stroudsburg School District, business manager Patricia Bader oversees a reserve fund balance — one of the largest among the 500 school districts in Pennsylvania.

But the district’s more than $34 million fund balance will not be tapped to help close an expected $10 million shortfall in a proposed $143 million budget.

Instead, residents of the district — which straddles the line between Monroe and Pike counties in the state’s northeast corner — face a possible 2.3 percent property tax hike, the highest allowed for school districts under state law. In addition, several vacant positions will not be filled.

Bader said the school board was unwilling to dip into the reserves to close the budget hole.

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