FY25 2nd Quarter Tuition Projection - DESE released 2nd quarter numbers December 24, 2024.  There is an approximately $160,000 difference between quarter 1 and quarter 2 for projected tuition vs budgeted tuition.  The first quarter was based on projected enrollment and above foundation rates from FY24 whereas the second quarter is based on enrollment reported with the October 1st report and updated above foundation numbers.  If PVPA receives $7.9 million dollars in tuition as projected, then the lowest contingency in the CBA would be triggered and staff would receive a one time payment at the end of the year equaling 2% of wages.

The highlighted figures represent communities that increased their above foundation (AFR) tuition rates.  This increase in AFR along with the actual shifts in where the students are coming from are the reasons for the increase.  This data seems contrary to what was being communicated throughout the state during budget season last year - a decrease in AFR, based on the disappearance of ESSER funds, was projected.  It would seem that communities may have chosen to increase their education dollars on the local level rather than eliminate jobs/programs that were supported by ESSER funding.  One point to remember is that districts are allowed to adjust their AFR right up to the 4th quarter of the year.  This is all good news for PVPA but caution is recommended - especially when this is reliant on the ever changing AFR.

The P&L Budget vs Actual through December 26, 2024 was reviewed.  Half way through the fiscal year!  As such the % of budget should be in the 50% range.  We made note last quarter that some expenditures, especially in Administrative and Facilities costs are front loaded with full year contracts that have been paid at the start of the year.   Educational salaries are also an area that are inconsistent with the 50% as school year salaries start in late August.  

An additional item of mention at this time is the grant revenue and expenses.  Our grants were approved later this year than normal and has lead to less spending during the first and second quarter.  Reimbursement requests have been submitted to the Commonwealth and are expected at the end of December - this will significantly change the grant revenue line.

Overall there are no areas of concern; at this time we are on track to remain within budget in terms of spending.