North Penn: Impact Mixed from Shapiro’s Budget Requests

Dan Sokil | The Reporter•

North Penn CFO Steve Skrocki speaks about the financial impact of a proposed expansion of North Penn High School during a community forum meeting on D

What does this week’s state budget address by Gov. Josh Shapiro mean for the North Penn School District?

It’s too soon to know every detail, but early signs are that the impact will be mixed, school board members heard on Tuesday night.

"The basic education funding that’s proposed by the governor would result in a 4.8 percent increase in basic education funding — about $808,000 in additional basic education funding,” said district CFO Steve Skrocki.

"Now: 4.8 percent, we’re grateful for that, but compare that to the increase we had this year, it falls way short,” he said.

Skrocki explained that for the current 2023-24 fiscal year, the district’s state basic education subsidy increased by $2.4 million or just under 17 percent of the prior level. That is compared to the proposed increase of $808,000 or 4.8 percent for 2024-25.

For special education funding, the state’s subsidies would jump. Shapiro’s proposal would include an increase of $294,000 or 4 percent, compared to an increase of $180,000 or 2.5 percent for the current year, Skrocki told the board.

"So we are seeing a tick-up with the special education funding,” he said.

Statewide, Shapiro’s budget address proposed a new $1.1 billion increase in basic education funding, of which "the vast majority” would be allocated per the terms of a basic education funding commission, proposed to begin to address inequities in state school funding which a state court order has deemed unconstitutional.

"North Penn really was not a benefactor of the BEFC recommendation at all,” Skrocki said. Three districts in Montgomery County saw 20-plus percent increases in that funding source, including Norristown, Pottstown and Pottsgrove, but no similar such increase is proposed for North Penn.

"So unfortunately we weren’t the recipient of more dollars, but we are certainly thankful for $4.8 million,” Skrocki said.

Budget Timeline

Each year the governor proposes a state budget in early February and the administration and lawmakers wrangle over the details for the next several months, while over the same stretch the district’s school board members hear presentations from various department heads on their budget proposals for the upcoming year, ahead of a preliminary budget adoption in May and final adoption in June for a fiscal year that starts July 1.

In June 2023 North Penn’s board adopted a $312 million budget, with a 4.1 percent tax increase for 2023-24, and have since heard updates from staff on various state-level holdups on subsidies from Harrisburg to local districts, and on court cases such as the ruling that the state’s current education formula is unconstitutional.

On Tuesday night, Skrocki outlined the local impact of the proposals contained in Shapiro’s budget address, given just hours before.

Cyber and Charter Funding Reform

Other topics mentioned by Shapiro included cyber school funding reform, which North Penn officials have said could yield millions in new income for the district if that funding allocation is changed at the state level. A bill to change that funding formula currently sits at the state Senate’sEducation Committee, he said.

"Implementing cyber and charter reform would save taxpayers $262 million in the Commonwealth of Pennsylvania. Here in North Penn School District, the savings would be $2.5 million,” Skrocki said. "Hopefully, the governor including it with his budget address will help prompt movement in the Senate Education Committee.”

Projections based on Shapiro’s address will now be included in a draft 2024-25 budget up for discussion at future finance committee meetings, the CFO added, and he’ll give updates on new developments or changes as state budget hearings continue.

Air Conditioning?

Finance committee chairman Christian Fusco asked if the budget address included any mention of restoring state Plan-Con subsidies, which had been funding from the state to aid with local construction projects such as school renovations. Skrocki answered that Plan-Con wasn’t directly addressed, but Shapiro did reference a proposal for $300 million for "environmental repairs” for schools statewide.

"Again, the devil is in the details, we don’t know what that means specifically. He mentioned asbestos and lead in his address today, so that might squeeze us out of any opportunity, and money there,” Skrocki said.

Superintendent Todd Bauer added that he heard one reference that caught his attention, particularly in light of years of complaints from North Penn parents about a lack of air conditioning at all three middle schools.

"Governor Shapiro did say, and I quote, ‘We want our schools to be air conditioned in August, and heated in January and February’ So I look forward to reaching out to his office to see what that looks like for North Penn, and our middle schools,” Bauer said. "If we can apply, I can assure you we will.”

"But it appears nothing with Plan-Con. Which means, as we embark on our high school project, it appears it will be 100 percent borne by North Penn taxpayers, with no state participation whatsoever,” Skrocki added.

Board member Kunbi Rudnick asked what the basic education funding commission uses to choose its allocations, and Skrocki said it’s a combination of a basic education formula adopted in 2016, plus annual percentage increases, and changes to that funding formula could also allocate more state dollars toward North Penn.

"If 100 percent of the basic education funding went through that (new) formula, North Penn School District would realize over $7 million a year in additional subsidy from the state,” he said.

Rudnick then asked about references to funds for "safe and healthy facilities” and if the district could qualify, and Skrocki said that allocation hasn’t been specifically identified, but "if you look at the profile of North Penn School District, it’s probably unlikely that we will see much if any of that money.”

Board member Jonathan Kassa asked if Skrocki knew specifics about a proposed $50 million for school safety in the budget, and said he recalled a similar promise of $60 million for the same category in the wake of the Parkland High School shooting in 2018 that yielded "a couple hundred thousand dollars” for North Penn; Skrocki said he’d report back as details are clarified.

North Penn’s school board next meets at 7 p.m. on Feb. 15 and the finance committee next meets at 6 p.m. on Feb. 20; for more information visit www.NPenn.org.

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