How new PA budget impacts Berks school funding

By David Mekeel

How new PA budget impacts Berks school funding

For more than four months, public school officials across Pennsylvania waited and worried.

As a stalemate between Republican and Democratic lawmakers pushed passage of the state's budget back further and further, school districts missed payments.

Basic education subsidies -- school districts' largest streams of state money -- didn't arrive. Neither did funds to help pay for special education or construction projects or to help shrink the funding gap between wealthy and poor districts.

Districts were forced to tighten their belts, not knowing when cash would start to flow or how much would arrive when the faucet was finally turned on.

Last week, they got their answers to both of those questions.

The Legislature passed and Gov. Josh Shapiro signed a new $50.1 billion spending plan for the state. And, much like versions from the past several years, the 2025-26 state budget includes hefty funding increases for education.

In total, the new budget adds more than $900 million in education spending.

The biggest chunk of that increase comes through school adequacy funding, which will see a $565 million hike. Adequacy funding is funneled to financially struggling school districts, aimed at shrinking the gap between wealthy and poor school districts.

The budget also adds $105 million in basic education spending, $40 million in special education funding and $125 million for school infrastructure projects.

On top of the funding increases, the budget also offers some savings for school. It includes a cap on how much districts have to pay in tuition for students that attend cyber charter schools, a move that is expected to save those districts $175 million.

Berks County school districts will share in the financial boon provided in the new state budget.

The county's 18 school district will receive more than $500 million through basic education funding, special education funding and Ready to Learn block grants, which includes adequacy funding. That's a $42 million increase from the past budget.

The largest piece of the increase will go to the Reading School District, which will see more than $29 million in new funding. Most of that, just over $25.6 million, will come in the form of school adequacy funding.

While not seeing as big of a boost as Reading, all of the other Berks districts will see significant impacts from adequacy funding.

In total, the county's 18 districts will see more than $35 million in increases in adequacy funding. Besides Reading, other districts to see hefty influxes are Muhlenberg, $2.1 million; Wilson, $1.9 million; Gov. Mifflin, $1.6 million; and Boyertown, $1.4 million.

Local school officials expressed gratitude and relief over the passing of the budget.

"Like many school leaders, we are relieved that a budget agreement is in place and grateful for Gov. Shapiro's unwavering commitment to public education," said Dr. Joseph Macharola, Muhlenberg superintendent. "His support continues to be a cornerstone in ensuring that schools like ours can provide the resources and opportunities our students deserve."

Macharola said his district has been budgeting cautiously as it awaited passage of the state budget, particularly as it moves forward with major building expansions and critical facility upgrades. Earlier this year, he estimated the district could operate through April 2026 in the absence of a state budget -- though only with significant cuts that would have affected students, staff and essential programming.

"This agreement means we can avoid deep reductions and continue focusing on what matters most -- supporting our students and maintaining high-quality programs," he said.

Dr. Timothy Matlack, Antietam superintendent, said he was happy with the new budget, but also pointed out that more can be done to support schools.

"In terms of the increase in funding, it is definitely a step in the right direction," he said. "However, we know there is still a long way to go."

Matlack pointed to a 2023 state Supreme Court decision that made clear the state's funding for public schools was not meeting requirements in the state constitution.

"We do not envy our representatives and senators in Harrisburg for the difficult task of navigating a solution," he said. "As with any funding conversation, changes always produce winners and losers because funds are always finite.

"We appreciate the steps that were taken in this budget to try to address funding, especially for schools like Antietam, whose communities are disproportionately impacted by property taxes compared to many of our neighbors across the commonwealth."

Matlack also said he was happy the state took action on cyber school reform.

"We also appreciate the steps that were taken to address cyber charter school funding," he said. "We support parents' rights to choose the educational environment they feel will best serve their children's needs. However, given the findings presented in Auditor General (Timothy) DeFoor's report last year, school boards across the commonwealth were right to speak out and ask for reform."

Dr. Christopher Beissel, Hamburg superintendent, said he is glad the wait for a state budget is finally over.

"I would say that there is relief that the budget has been passed, providing clarity and resolution for school districts," he said.

He, like Macharola, pointed in particular to cyber charter reform as an important issue that is now being addressed by the state.

"It is critical that there is continued discussion in future budgets regarding cyber charter tuition reform to provide relief to local taxpayers and more accurately align tuition rates with the operational costs of virtual learning programs," he said. "We recognize and value the choice that cyber charter programs provide to students and families and ask that tuition reforms can more appropriately align with the actual cost associated with virtual learning."

Dr. Jill Hackman, executive director of the Berks County Intermediate Unit, said that $7.5 million in funding increases for early childhood education and special education included in the new budget will have a significant impact.

"The Berks County Intermediate Unit is grateful that the enacted state budget includes meaningful increases for preschool early intervention, Pre-K Counts and special education," she said. "The additional early childhood funding will allow us to continue providing high-quality early learning opportunities for our youngest learners across Berks County -- a critical investment in school readiness and long-term success.

"The increase in special education funding will also help us continue supporting our school-age population, ensuring that students with diverse needs receive the specialized services and resources essential to their growth."

Like local education leaders, statewide education organizations also lauded funding increases in the budget.

"The passage of Pennsylvania's budget after a four-month impasse is an important step toward stability," said Nathan Mains, CEO of the Pennsylvania School Boards Association. "While the delay created real challenges, this outcome demonstrates that even in a divided government, compromise is possible when the focus remains on serving students and families."

"After months of uncertainty, districts can now move forward with confidence and focus on delivering the high-quality education students deserve."

Deborah Gordon Klehr, executive director of the Education Law Center-PA, said the budget delay was concerning, but the ultimate result was gratifying.

"Lawmakers' five-month delay in passing this year's budget left schools, educators and families in unnecessary limbo and resulted in avoidable harm," she said. "But with this budget, lawmakers affirmed that the commonwealth remains on the path toward a fully and fairly funded public education system.

"This is another step forward -- one that must be followed by continued commitment and sustained investment until every student, in every community, has the resources they need to learn and thrive."

Pennsylvania State Education Association President Aaron Chapin commended the governor and lawmakers for showing a strong commitment to education in the budget.

"This responsible, balanced plan reflects a spirit of compromise, while taking another major step toward fixing our unconstitutional public school funding system and supporting this year's class of student teachers," he said. "Since he was sworn in as governor, Josh Shapiro has worked with legislators of both parties to secure more than $2 billion in new funding to help students across Pennsylvania. This commonsense leadership is creating smaller class sizes, an expansion of early childhood education, and historic resources for our most underfunded schools."

A statement from PA School Works said news of the budget passing created a collective sigh of relief from the education community.

"This budget includes transformational funding to keep our public schools operating with another critical year of adequacy funding directed to the schools most affected by decades of underfunding, as directed by the Commonwealth Court," the statement reads. "For two straight years, a bipartisan commitment to adequacy signals that lawmakers have made this a non-negotiable priority until full constitutional compliance is achieved -- that represents progress and integrity.

"While the delayed budget makes planning and operations difficult for public schools, this agreement demonstrates what's possible when our leaders prioritize students and work together to meet Pennsylvania's constitutional duty to provide a 'thorough and efficient' public education system."

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