PITTSBURGH (KDKA) — Pennsylvania’s 500 school districts get millions of dollars in state funding to operate.

But so far in this fiscal year — they haven’t gotten a penny.

And that could have a big impact once schools start up later this month.

So far it’s been a relatively painless budget impasse between a Republican legislature and a Democratic governor, but school districts — regardless of party — are about to feel the hit.

“I know that some school districts that have taken out loans so that they can cover their first payroll,” Nina Esposito-Visgitis, president of the Pittsburgh Federation of Teachers told KDKA political editor Jon Delano on Monday.

Since July 1st, school districts have not received any 2015-2016 fiscal year state education funding because of the deadlock in Harrisburg.

“Budgets are very tight. Every penny counts, so that has been a challenge. And now as we begin the school year, it becomes even more of a challenge when districts will not receive their subsidy funds,” says Dr. Linda Hippert, head of the Allegheny Intermediate Unit.

Just as students return to school, school boards and teachers unions are negotiating contracts without really knowing how much revenue is in the pot.

“When there is an unknown in Harrisburg, there is an unknown at the bargaining table in your local districts,” notes Matt Edgell, community advocacy coordinator for the Pennsylvania State Education Association.

Over 20 local districts are in the middle of labor negotiations, including Ambridge Area, Baldwin-Whitehall, Belle Vernon Area, Brentwood, Butler Area, California Area, Central Valley, Derry Area, Duquesne, Freedom Area, Greensburg-Salem, Highlands, Kiski Area, Monessen, Northgate, Peters, Pittsburgh, South Allegheny, South Butler County, South Park, Sto-Rox, and Wilkinsburg.

Nobody is predicting a school strike anywhere soon, but teachers will only work so long without a contract.

And that’s not the only challenge.

Maybe it’s no surprise but those school districts that have the most problems, the greatest need, get the most money from the state government, so the failure of the governor and the Republican legislature to reach a compromise means that our most vulnerable children are hurt first.

Dr. Hippert, a former superintendent, says the less affluent districts cannot go into mid-Fall without state funding.

Hippert: “I don’t see how they can continue to operate because they have challenges already making ends meet and making payroll every month so..”

Delano: “So a shutdown is a possibility?”

Hippert: “It certainly is. The longer this goes, the more it becomes a possibility.”

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