Quakertown Community School District administrators have come up with a band-aid solution to an ongoing cash-flow crisis stemming from the state budget deadlock that is impacting the majority of Pennsylvania school districts.

        A $5 million cash conservation plan has been formulated by district superintendent and administrators since the last school board meeting in February.

        At that time, the district was owed approximately $14 million by the state. And a decision was made by board members to withhold the next two PSERS (Pennsylvania School Employees Retirement System) payments, excluding amounts the district withholds from employees, which would save $5 million. Additionally, the board decided to freeze charter school payments totaling $796,000.

        According to district superintendent Dr. William Harner, as presented during the school board meeting Thurs., March 10, so far the district has received $9,709,878 from the state but is still waiting for $6,379,827.

        The estimated fund balance for the end of the 2015-16 school year is $7,331,736. Harner explained, the district will use $6,508,324 of that with only $823,412 remaining to start the next school year.

        According to finance committee chair, Chuck Shermer, and Harner, "that is not nearly enough to start a new school year."

        The plan presented by Harner will conserve approximately $4 million in cash.

        "We will be canceling all field trips that are not funded through PTO or other outside sources (including transportation), canceling all professional development except grant-funded or state-mandated training, not provide substitute teacher coverage for participation in activities including field trips, professional development, and activities such as outdoor school, and freezing purchases and hiring," he said.

        The plan does not include any staff furloughs for the 2015-16 school year. However, Harner admits furloughs will be required in the future.

        Harmer also explained,the 2016-17 budget was looked at by administrators with four different funding scenarios presented to the board as follows: Scenario A or "normal" budget, assumes all or most budgeted state funding is received similar to 2015-16; Scenario B or "moderate" impact budget would reflect not receiving the $6.37 million in state funding budgeted for in 2015-16 thus being a one-time loss; Scenario C or "catastrophic" impact budget assumes the $6.37 million is never received and is a cumulative and permanent hole in revenues; Scenario D or "worse case/doomsday" impact budget would be never receiving the $6.37 million and absolutely no state funding for 2016-17 thus creating a hole of more than $31 million.

        For now, the district should plan for all scenarios and decide on further curtailment and furlough options at the April school board meeting. The final budget approval comes in June as well.