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NL withholds payment from charter schools

As the state budget impasse looms, Northern Lehigh School District has chosen not to make payments of tuition to charter schools.

The school board, on a 6-0 vote on Monday, authorized administration to delay payment of tuition to charter schools until a budget for 2015-2016 is approved and state funding is once again provided to the district. Directors Mathias Green, Gary Fedorcha and Donna Kulp were absent.Sherri Molitoris, co-director of business affairs/human relations, said she's thankful the district has been able to stay afloat in light of the budget impasse.Director Gregory Williams questioned how long the district can continue to operate without receiving money from the state.Molitoris said the district could get by through January with the district's current fund balance before things would begin to get much more difficult.Superintendent Michael Michaels said that according to his sources, the state budget may not be passed until around Christmas, at the earliest.Director Robert Keegan Jr. asked whether the district would have to consider closing its schools should the budget impasse last beyond that.Michaels said that is something that has been discussed should the need arise.After the meeting, Molitoris said the district has six charter schools it has bills for that it currently is not paying, and also has six charter schools where kids are enrolled that have not yet requested payment, and even if they do, the district will still withhold payment from them as well.In a related matter, the board authorized Embassy Bank, National Penn, New Tripoli Bank, First Trust, PNC, TD Bank, Santander, Wells Fargo, and American Bank as financial institutions to act as approved depositories for school district funds and/or temporary investments.The board further authorizes the financial institutions to transfer funds on deposit to any other bank for the credit of the district, and authorizes the district business manager and/or superintendent to enter into agreements, supplements, or amendments to agreements to implement the foregoing operations for the 2015-16 school year.