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Chris Lilienthal (717) 712-6677
David Broderic (717) 376-9169
HARRISBURG, PA (Sept. 25, 2025) — PSEA envisions a future where resources and funding are no longer obstacles for our students to reach their full potential. Yet, financial pressures continue to build on our public schools as the FY 2025-26 state budget impasse stretches on, freezing billions in state funding for school districts, intermediate units, and career and tech centers.
The Pennsylvania State Education Association estimates that school districts are now waiting on $3.76 billion in state funding, after missing what would have been the third monthly payment of state funding today. Policymakers have been unable to agree on a budget for the 2025-26 fiscal year, which started on July 1.
“School districts across Pennsylvania are feeling dramatic financial pressures because of the state’s failure to pass a budget,” PSEA President Aaron Chapin said. “Without a budget agreement, more public schools are going to have to make tough decisions, like delaying building projects, shutting down education programs, and taking out costly loans.”
Chapin noted that the typical school district in Pennsylvania keeps enough money in reserve to afford 87 days of expenditures. Today marks the 87th day of FY 2025-26 without a state budget.
A full list of all school entities and the estimated state funding they have missed in July, August, and September is available at www.psea.org/budget. PSEA’s estimates include state subsidies for basic education, special education, early intervention, state property tax reduction, ready to learn block grant, pupil transportation subsidy, school employee Social Security, IU special education transportation, IU core services, and secondary career and technical education subsidy.
School Districts Forced to Take Out Loans
As the budget impasse persists, school districts are starting to take out loans with costly interest and fees just to fund ongoing operations.
The budget impasse has driven the School District of Lancaster to approve a $35 million loan, the River Valley School District in Indiana County to approve a $5 million loan, and the Uniontown Area School District to consider a $5 million loan.
“The more public schools that have to take out loans, the more taxpayers pay,” Chapin said. “The Lancaster loan, for instance, will cost an extra $200,000 in taxpayer funds for just fees and interest — money that could have gone toward more teachers, paraprofessionals, and services for students with special needs.”
Say No to Vouchers
Chapin also urged lawmakers to reject any efforts to tie budget passage to a tuition voucher scheme that will send taxpayer dollars to private and religious schools.
In August, state Senate President Pro Tempore Kim Ward said on a radio show that she is holding up the state budget until lawmakers agree to her plan to send millions of our tax dollars to private and religious schools.
“Our kids are not bargaining chips,” Chapin said. “You cannot trade funding for their schools for a tuition voucher scheme. School vouchers have proven to be expensive failures in every state where they have been tried. We do not need to repeat others’ mistakes here in Pennsylvania.”
Michigan State researcher Josh Cowen found that the learning losses from voucher programs in Louisiana and Ohio were worse than those caused by the COVID-19 pandemic, and that learning losses from programs in Washington, D.C., and Indiana were on par with those caused by Hurricane Katrina.
“Vouchers fail to deliver for the kids who are most in need,” Chapin said. “If we really want to ensure every student in Pennsylvania has access to a high-quality education regardless of ZIP code or socioeconomic status, we must equitably fund the public schools that serve those students.”
Chapin is a Stroudsburg Area middle school teacher and president of PSEA. An affiliate of the National Education Association, PSEA represents about 177,000 active and retired educators and school employees, aspiring educators, higher education staff, and health care workers in Pennsylvania.
