By Brad Segall

HORSHAM, Pa. (CBS) – Hatboro-Horsham school officials are “fearful” after learning the Obama administration wants to “zero out” federal impact aid for districts that receive government funding for military land within their coverage area.

School leaders are turning to their elected officials for help after learning they could lose $650,000 in federal aid this year. They knew the money would eventually dry up, but not this soon. The district receives the money because the recently closed 1100 acre Willow Grove Naval Air Station didn’t generate any tax revenue.

State Representative Todd Stephens plans to fire off letters to his federal counterparts urging them to fight to restore the money.

“I mean, obviously this would have an effect on our local property taxpayers, because they are going to have to make up the difference of what the federal government doesn’t provide,” Stephens says.

The district is already projecting a $1.7 million shortfall, which could result in cuts and staff reductions. Stephens blames the Rendell administration for spending too much time trying to push the plan for a commercial airport on the site, delaying the local community’s redevelopment process.

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