Some of Pennsylvania’s school districts may have to empty their reserves or take out loans to open for the fall semester because billions of dollars in state aid is held up in a month-old political stalemate.
A dispute over education funding has contributed to holding up the proposed $45 billion state budget. One stumbling block is a whether toprogram subsidizing students in the lowest performing districts so they can attend private or religious schools. The district has been working with a deficit for 14 years, Iskric said, and there’s no funding to bridge the gap when the state starts missing payments to the roughly 1,400-student district just outside Harrisburg.Any loan, however, will likely come with high interest rates and fees that would further compound the district's deficit, Iskric said.
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