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Butler Area may borrow, amid state budget impasse

BUTLER TWP — On Day 105 of the state’s budget impasse, Butler Area School District superintendent Brian White summarized his update to the board Monday, Oct. 13, as “no progress, no updates, and a lot of frustrations.”

“It’s almost laughable, you may also want to cry, that the state budget has not passed,” White said. “We have no idea what the holdup is.”

White said the district is about two weeks away from starting the process of taking out a tax anticipation note. He said this would take about six weeks to get fully approved and set up.

Up to this point, Butler and Karns City are the two school districts in Butler County who have openly said they may take out a loan. At board meetings in other districts, superintendents have openly said a prolonged impasse could create budget problems.

“Fifty percent of the budget is not coming through, the state hasn’t passed it, we’re eventually going to end up with a cash flow problem, probably in January,” White said. We’ll start that process with a banker in November so the board can execute in December.”

The impasse has gone on since the Pennsylvania General Assembly missed its budget deadline June 30. Since then, local school districts have not received multiple payments from the state.

Butler Area School District has a budget of roughly $117.74 million for the 2025-26 school year. In expected revenue, the district’s budget projected $56.43 million would come from the state — just over 47%.

Butler is keeping an eye on a recently approved program from the state treasurer’s office to provide low-interest loans, but White said he has not heard if it will benefit public school districts.

“Nothing has been communicated to me as a school superintendent. Based off the media reports, it looks like that’s focused on Head Start, and programs like that, it doesn’t look like it’s going to be directed to schools at this point, but if it is something directed at schools, we’re definitely going to take a look at it,” White said.

White and other superintendents have taken issue with the fact that if a district takes out a loan to make up for lost money, the state does not reimburse them for interest paid. Speaking directly to the audience at the board meeting, White emphasized that in the end, the taxpayers foot the bill for this.

“We’re going to have to borrow money that costs interest, and someone has to pay that interest. You know who?” White asked. “You are.”

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