Northampton Area School District is withholding a portion of its funding for charter schools. The lack of an approved 2025-26 state budget, which includes funding for school districts, is cited as the reason for the decision.

NASD Board of Education voted unanimously 9-0 at its Oct. 13 meeting to approve a resolution “to withhold a portion of charter school payments until state funding is restored.” School districts underwrite tuition payments for students in their districts who attend charter schools.

“We’re going to withhold a portion of funding — 30% — which is what we receive from the state,” NASD Superintendent of Schools Joseph S. Kovalchik said before the vote. “So, the charter schools will have to feel some of the pain. When the state budget is passed, if it is passed, the charter school funding will be paid.”

Schools, counties, nonprofits and businesses have not received funds as the state budget impasse enters its fourth month. The state budget was to have been approved June 30, which is when school districts are required by law to approve state budgets.

NASD adopted its 2025-26 budget of $140,659,873 at its June 16 school board meeting.

In his 2025-26 budget proposal Feb. 4, Pennsylvania Gov. Josh Shapiro said basic education funding would increase $75 million and special education funding would increase $40 million.

The Pennsylvania House of Representatives approved a state budget of $50.25 billion, a 5% increase, Oct. 8. State Senate Republicans maintain the state budget must remain at its $47.6 million previous annual budget level. The Senate is back in session Oct. 20.

State education funding will not be processed until a state budget for fiscal year 2025-26 is approved.

“Because of the state budget impasse, Pennsylvania public schools have missed out on $3.76 billion in expected state payments in July, August and September,” according to a Sept. 25 news release on the website of the Pennsylvania State Education Association.

“We’re OK now in our funding for the budget,” NASD school board President Kristin Soldridge said, adding the NASD administration would contact state representatives to urge them to approve the state budget.

NASD will reduce its monthly charter school funding by $300,000, starting with October payments, NASD Business Administrator Craig Neiman told The Press after the conclusion of the two-hour school board meeting in the Northampton Area High School auditorium.

NASD pays $1 million per month, or approximately $9 million annually, to 25 charter schools, including brick-and-mortar charter schools and cyber charter schools, Neiman said. The $300,000 amount is based on the 30% funding level the Pennsylvania Department of Education typically provides for school district annual budgets, Neiman added.

A copy of the NASD resolution to withhold a portion of charter school payments until state funding is restored was provided by Neiman.

The resolution states, “The Northampton Area School District depends on timely and adequate state funding to provide for the education of over 5,000 students. Approximately 30% of the district’s annual revenue is derived from the commonwealth of Pennsylvania. The commonwealth of Pennsylvania has not enacted a state budget for the 2025-26 school year, leaving public school districts without the state funding they are legally entitled to receive. Charter schools are also public schools authorized under Pennsylvania law, and their operations are likewise dependent on public funding from the commonwealth.

“Law requires school districts to make payments to charter schools regardless of whether the state has fulfilled its constitutional obligation to fund public education, thereby placing an inequitable and unsustainable financial burden on school districts during a budget impasse. It is both fair and reasonable that charter schools share in the impact of the state’s failure to pass a budget to the same extent as school districts and that any withholding of funds be understood as a temporary measure to ensure equity until state funding is restored.

“The board calls upon the General Assembly to take immediate action to end the budget impasse and enact a fair and adequate public education funding system that treats both district and charter school equitably. Copies of this resolution shall be sent to the leaders of the General Assembly, the Pennsylvania Department of Education and neighboring school districts to encourage a united stance in defense of fair funding for all public schools.”

Catasauqua Area School District and Bethlehem Area School District voted to withhold a portion of the charter school funding at their Oct. 14 and Sept. 22 meetings, respectively. Northern Lehigh School District and Salisbury Township School District may consider withholding charter school funding at their October board meetings. East Penn School District’s board discussed withholding charter school funding at its Oct. 13 meeting.

Each board cited the state budget impasse as the reason for withholding charter school funding.

The NASD school board is next scheduled to meet 6:30 p.m. Nov. 10 in the NAHS auditorium, 1619 Laubach Ave.