Imagine your regular paycheck doesn't arrive on time.

How would you pay your bills?

That's what school districts in Mercer County and across the state are trying to figure out.

Pennsylvania's legislature and governor can't agree on a state budget and that means school district are not getting the state subsidy that usually comes in August.

A representative from the state Department of Education has been collecting information from school districts to find out just what kind of a financial crunch the late state money is causing.

James Wolf, business manger of the Sharon City School District, told school directors last week the district may not be able to meet payroll, health care and other bills in September without $1.6 million the district expects from the state.

One thing that will help the district get through August is early tax collection, Wolf said. The district has collected $654,058 so far, he said. There is still $4,459,000 left to collect.

Sharon officials have not made a decision as to how they will pay the bills. Wolf said there is a possibility the district could get a loan.

That's what some other districts are planning on doing.

"We don't have enough cash from our normal revenues, and we need that money to operate," Reynolds School District Superintendent Dr. Anthony Trosan said. "We need those subsidies."

By far, the highest payments Reynolds makes each month cover health care benefits and employee salaries, closely followed by payments to Social Security tax and retirement funds, Trosan said. "And then there are normal things, like utility bills, the cost of supplies, and bills for work that's done," he said.

If the money doesn't come through in time Trosan said the result could be disastrous for the district.

"We'd have to look at options like taking out yet another loan," he said. "We're trying to get out of a difficult financial situation, not make it worse."

The lack of state money could put the school into a state-defined financially endangered status, he said. "It's a serious problem for Reynolds."

"We are feeling the crunch," Greenville Area School District Superintendent Patricia Homer said. "We're going to our board Monday to ask permission to borrow money," she said.

The school district may need to open a line of credit up to $1 million, she said.

"We won't be able to get through September," she said. "It may be difficult to even get through this month."

"These months are our high expense months, paying for new material and equipment for the upcoming school year. We were told it could not come through for us until October."

Normally, she said, Greenville gets $700,000 each quarter in state subsidies.

Sharpsville Area School District isn't in as dire straights as some districts, Superintendent Dr. Derry L. Stufft said, but directors are expected to act on preliminary authorization for a tax and revenue anticipation note at their meeting Monday.

The note allows the district to borrow against anticipated revenues, Stufft said.

"We would not look at doing this unless we absolutely found it necessary," he said. "Right now we're okay as long as the state passes a budget within the next two months."

Mercer Area School District will run out of money in September if the state doesn't come through, said Superintendent Dr. Bill Gathers

He said without the state subsidy money, the school district would have to go to a bank to get a tax anticipation loan. "It will ultimately cost our taxpayers more money," he said, adding that besides interest accrued on any loan, the district is also losing any opportunity for gaining money from interest on their fund balance.

Though getting a loan is that last thing Gathers wants to do, unless state money comes in soon, this and other school districts will have no choice. "If the money's not coming in, we'll have to shut down."

Grove City School Superintendent Dr. Robert Post told that district's school board last week that he, too, was concerned about using up the fund balance by September.

"We're in as good shape as any other district but there are storm clouds on the horizon," he said. Grove City school directors urged the public to "write your state legislator," concerning the budget stalemate.

When Farrell Area school directors approved a 5è-mill property tax increase in June, they assumed the state's end of the bargain would be late in coming, said Lester Robinson, Farrell school board president.

"Our thing is the millage right now will be OK for us, but we're really banking on the money. It will really make a difference," he said.

Robinson called it an "emergency situation," and said Farrell can last no more than two months without state financing.

"But we're definitely depending on it," he said. "We will be all right just for a short time. We're holding our own ..."

School directors in the Wilmington Area School District aren't panicking about the state's failure to pass a budget -- not yet anyway.

Superintendent Dr. Joyce Nicksick said school officials are keeping a very close watch on the situation.

"Right now, we have sufficient funds to meet our expenses," Dr. Nicksick said Thursday.

The superintendent said she heard Gov. Ed Rendell say if worse comes to worse, he'd make loans available to school districts with no interest.

"If that's an avenue we have to pursue, we will pursue it," she said.

West Middlesex Area School District Superintendent Al Jones said the district is fine for now and will be able to meet September expenses but the district can't go on for too long without the state subsidy.

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