SCRANTON, PA — The Scranton School District delivered a sobering financial warning Monday night, stating it is rapidly running out of money and could soon struggle to make payroll due to the prolonged state budget impasse in Pennsylvania.
On Day 119 of the state funding freeze, district officials told the school board that while they began the year with a healthy $56 million fund balance, that balance is projected to plummet to just under $21 million by the end of October.
Superintendent Erin Keating painted a dire picture, anticipating the district will end the calendar year with only slightly more than $1 million in cash. She cautioned that even a single unexpected expense, such as a major repair or an outsized healthcare claim, could immediately push the district into a deficit.
Unlike most school systems, Scranton operates on a calendar year budget, meaning the bulk of its local tax revenue was collected in the spring. With little cash flowing in through the winter months, the district is preparing a drastic measure: officials plan to borrow $30 million in January through a Tax Revenue Anticipation Note (TRAN). This borrowing is necessary simply to meet payroll and operating obligations until new revenues arrive in March or July.
The district is now urgently looking for movement in Harrisburg or Washington to resolve the state budget deadlock before the financial situation becomes critical.