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    Home News Local schools districts facing financial collapse
    Local schools districts facing financial collapse
    Local News, News, Top Stories
    ALEX DAVIS Era Reporter a.davis@bradfordera.com  
    March 17, 2016

    Local schools districts facing financial collapse

    Local school districts on the brink of a financial collapse faced yet another roadblock on Wednesday in their efforts to secure months-overdue state funding.

    The latest hurdle came as Gov. Tom Wolf promised to veto a supplemental budget that would have restored funding to several programs, including education. The Senate and House passed the measure earlier in the day.

    Under that plan, House Bill 1801 would have increased education funding by $200 million and restored a majority of the $6 billion in funding cuts by Wolf’s line-item vetoes. The $30.031 billion spending plan would use existing revenues without a tax increase, according to Republican Senate officials.

    Now, school districts are back to square one, and that’s a position that doesn’t bode well for several area districts, especially the Austin Area School District, the smallest public school district in the state. That district could be left with only $54,460 in the general fund by the end of April, Business Manager Peggy Derr told The Era on Wednesday.

    At the same time, a tax and revenue anticipation note amounting to $100,000 from Northwest Savings Bank will be due June 30, she said.

    What kind of avenue officials plan to pursue to stay afloat isn’t known at this point Derr said.

    But Bradford Area School District Superintendent Katharine Pude said it is crucial that lawmakers start working together to craft a responsible spending plan agreement.

    “Schools across the Commonwealth have been forced to borrow money, cut programs, and lay off staff,” Pude said. “Some will soon be forced to close their doors. The education of our children should not suffer due to the inability of our legislators to compromise.”

    For her part, Coudersport Area School District Superintendent Alanna Huck said it is vital that individuals realize schools cannot continue to operate without additional state funding.

    “No matter what side of the aisle you are on in this battle, a resolution needs to be agreed upon so we do not have to shut schools down,” Huck said. “The battle has gone on long enough for the people of Pennsylvania and our schools, social services, hospitals, research institutions and all other areas affected by this impasse deserve a budget.”

    To push the state funding issue, on Wednesday officials in the Otto-Eldred School District posted a letter on its Facebook page, calling for action on the 2015-16 spending plan.

    “Pennsylvania schools and students have been waiting far too long for a state education budget! Please act now!” reads part of a statement put together by the Pennsylvania School Boards Association. “With anticipation of legislation in Harrisburg that would put a stop to the budget crisis, we urge you to contact your legislator and the governor and tell them to pass the 2015-16 state budget immediately.”

    The Galeton Area School District has also joined efforts to rally around the need for state funding.

    “This (effort) is very important as it sets the tone that districts cannot survive without the remaining funds for the 15/16 school year budget,” Superintendent Brenda Freeman said. “When we band together in an effort such as this, our voice becomes larger than an individual voice.”

    Not everyone sees the lobbying as an effective method, however. St. Marys Area School District Superintendent Dr. G. Brian Toth said the campaign hasn’t worked yet.

    When the smoke clears on state funding, Freeman said said she hopes her school district will receive the same amount of funding as 2014-15.

    “However, we budgeted based on the governor’s recommendations,” Freeman said. “Cyber charter payments were to be reduced to $5,950 per regular education student. This is a decrease from the prior year when we were charged nearly $15,000 per regular education student.”

    All told, that means the district faces nearly an additional $300,000 in expenses, she said.

    Meanwhile, Toth said budgeting is a nightmare without having the remaining state dollars for 2015-16 and not knowing the 2016-17 funding levels.

    “We are looking at all possible areas to cut without reducing student programs or infringing on student needs,” he said. “Since last November, we limited purchase orders to essentials and we have currently frozen purchases through the end of the year. For next year, we are budgeting no more from the state than what the House approved for 15-16 — $6,665,246.”

    Essentially, school officials are planning for a freeze to be put on state funding for next year, Toth said.

    The Pennsylvania School Boards Association has also thrown its support behind House Bill 1801.

    “No longer can the state hold schools and students hostage to politics,” said PSBA Executive Director Nathan Mains. “We need a state budget now before schools close.”

    The Commonwealth Foundation also shared thoughts regarding the funding measure.

    “The governor’s rush to reject any budget that doesn’t fulfill his tax-hike wish list is astonishing,” Matthew Brouillette, president and chief executive officer of the Commonwealth Foundation, said in a prepared statement. “The balanced budget making its way through the Legislature includes record-high education spending while avoiding tax increases on working families. It’s a win for schools, a win for taxpayers, and a win for Pennsylvania.”

    And as area school officials talk about their districts falling deeper into a financial abyss, state officials continue to again resort to the blame game.

    “Despite repeated efforts by my administration to work with Republican leaders to find compromise, including over the last couple days, Republican leaders are once again insistent on passing another irresponsible and unbalanced budget that does not fund our schools or fix the deficit,” Wolf said in a prepared statement.

    He continued, “This is further indication that the Republican leaders have no intention of working together with me to produce a final budget. This is the third time they have attempted to pass an unbalanced budget with no consultation with the administration. This is simply unproductive and a waste of taxpayer resources.”

    Wolf is proposing a $2.7 billion tax increase to wipe out the deficit and boost school spending.

    In his view, Senate President Pro Tempore Joe Scarnati, R-Brockway, said the supplemental spending plan passed by the Senate would provide schools, agriculture programs, critical access hospitals and many other programs with key state funding.

    “Governor Wolf’s desire to create a crisis by line item vetoing funding last December was completely inappropriate,” Scarnati said.  “It is long past time to close the 2015-16 budget and move on to working to provide a timely and responsible budget for 2016-17.”

    In a prepared statement, Rep. Martin Causer, R-Turtlepoint, said the time has come for Wolf to stop the manufactured crisis and ink the budget.

    “Holding people hostage to leverage support for higher spending and higher taxes — which taxpayers across the state have said they don’t want and can’t afford — is wrong, and it has to stop,” Causer said.

     

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