Pattye Benson

Community Matters

Easttown Township

TESD School Board Member Kevin Mahoney Says District Budget Could be 15% Over Budget in 2 Years if Pension Contribution Rates Don’t Change

September 1, 2010
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Interesting article in Daily Local newspaper by Dan Kristie (see below). TESD School Board Member Kevin Mahoney says the school budget could be 15% over budget in 2 years if the pension contributions rates don’t change. According to Mahoney, the only way to deal with the increasing pensions costs is to pass a large real estate tax increase! Comments . . .

Retirement System’s Cost to Rise Dramatically Soon

By DAN KRISTIE, Staff Writer

This is a dramatic increase, considering the district’s 2010-11 budget was $203 million and 60 to 70 percent of the district’s expenses are dedicated to salaries and benefits — a percentage that, because of contractual obligations, is difficult to reduce or change.

Schools across the state are facing similar increases in their retirement system contributions, and their budgets are similarly constrained.

School officials in Chester County expect the state Legislature will — somehow — adjust the retirement system so the increases will be less dramatic. But even if reforms are implemented, the retirement system remains dramatically underfunded. Local officials doubt any state-level solution to the PSERS crisis will save their own school districts from all the retirement system-related pain.

Officials are reluctant to speculate about what will be on the chopping block once the increased retirement system contributions come into effect. The consensus, however, is that if the increases are anywhere near as large as projected, educational programs will be affected.

Kevin Mahoney, the chairman of the Tredyffrin/Easttown School Board finance committee, said that if required PSERS contribution rates do not change, his school district in two years will be 15 percent over budget.

This will be the case, Mahoney said, even if Tredyffrin/Easttown sees no other cost increases except for a small increase in the cost of benefits. Mahoney added that the district is required by law to pass a balanced budget.

“You can only do that by increasing class size or eliminating curriculum choice,” Mahoney said. The other way for districts like Tredyffrin/Easttown to deal with the increased PSERS rates would be to pass a large real estate tax increase.

Act 1 is the state law that limits how much school districts can raise property taxes. Act 1, however, allows districts to exceed the limit in order to cover mandated pension contributions. Act 1 also allows districts to hold referendums if they seek to raise taxes beyond the limit.

Local school officials said Act 1 taxpayer referendums are extremely unlikely to pass in Chester County, given the economic climate and the mood of the electorate here. And, officials said, school districts would be unlikely to try to use Act 1 exemptions to pass the PSERS increase off to taxpayers.

“[The West Chester Area School] board has made it pretty clear we’re not taking exceptions,” said Jim Davison, the chairman of that school board’s finance committee. He added that the electorate in West Chester Area would never go for a referendum.

“I have no confidence in a referendum passing in this district,” Davison said. Davison, like Mahoney, said he believes his district’s educational programs could be in jeopardy if the state doesn’t reform the retirement system. He said, however, that West Chester Area will try to make other types of cuts — to facilities budgets and energy use, for example — and hope for the best from the state-level retirement system reform effort.

“But I don’t know if we can make enough of those types of cuts so we don’t impact the classroom,” Davison said. “That’s the million-dollar question. We may end up impacting the classroom — increasing class size, getting rid of programs.”

Bill Fagan, the chairman of the Downingtown Area School District finance committee, used the metaphor of a series of concentric circles to describe how the retirement system crisis might affect his district. “When you look at the concentric circle with the children in the middle, the farther out you get from that circle, those are the types of programs … more likely to be cut,” Fagan said.

Fagan said he was unwilling to speculate about precisely what type of programs would fall on the outer circles. But, he said, he hoped Downingtown Area could deal with the PSERS crisis without negatively impacting the classroom.

The state legislature in July voted to reduce the 2010-11 retirement system employer contribution rate from 8.22 percent to 5.64 percent, meaning school districts will be required to contribute less than expected this year to the fund.

Local officials said that, in the absence of other action, this only delays the retirement system crisis. “The state has been unwilling to change the benefit program,” Mahoney said. “We keep seeing this ski slope curve in front of us, and whenever we get close to it the state has changed the discount rate, which just makes the curb steeper but farther away.”

Easttown Supervisors are Setting the ‘Bar’

July 2, 2010
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My recent experience at Easttown’s special meeting re the Hawkins property and subsequent post has found its way east on the main line.

In discussing the attitude of some Lower Merion commissioners, which at times places politics and special interest ‘first’ and their residents ‘last’ in the list of priorities, blogger Carla compared Easttown’s civility to Lower Merion’s elected officials in her recent post, ‘If Only Lower Merion Thought of Residents FIRST Once in a While’. (Here’s a link to Carla’s post).

Why should appropriate behavior at a township meeting, such as the recent special meeting at Easttown, be heralded as unique and special? Lately, we have witnessed less than desirable decorum from some elected officials up and down the main line. Doesn’t matter if it’s Lower Merion, Radnor or Tredyffrin Townships . . . civility and appropriate decorum is slipping away, replaced with a combative atmosphere.

Rather than a unique situation, Easttown’s civil discourse this week should be the norm, why has the ‘bar’ of local government now been set so seemingly low?

How do we encourage change of attitude in our leaders? How do we raise the bar of expectation? I know it’s possible . . . I saw it this week in Easttown!

Civil Discourse Between Agnes Irwin School Supporters and Easttown Residents . . . Township Supervisors Listen and the Vote Goes in Favor of the Community Voice

June 30, 2010
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Civil Discourse is the formal exchange of reasoned views as to which of several alternative courses of action should be taken to solve a societal problem. It is intended to involve all citizens in the making of the decision, persuade others (through valid information and logic), and clarify what course of action would be most effective in solving the societal problem.

Last night the auditorium of Beaumont Elementary School was standing room only for Easttown Township’s special meeting . . . by my calculations, 250 Easttown residents and Agnes Irwin School (AIS) supporters packed in to the room. After brief remarks from the township supervisors, there was a 20-minute overview of the revised Agnes Irwin School’s proposed playing field plans for the Hawkins Farm. Agnes Irwin head of school, Dr. Mary Seppala spoke about the school and the students, followed by AIS attorney Ross Weiss who explained the contents of the revised playing field plans. Mr. Weiss presented AIS’s new proposed plan; attempting to answer many of the previous concerns of the Hawkins Farm neighbors and other Easttown residents.

A cornerstone of the new proposal was a ‘give-back’ of 58 acres (of the 108 acres) to Easttown. Other new plan components included the creation of $500K fund for the township, whose yearly interest was intended for maintenance of the 58 acres; complete public use of playing fields and tennis courts and a walking trail throughout the property with exercise stations. Mr. Weiss patiently promoted the merits of this new plan and his hope that the supervisors would allow the plan to move to the planning commission.

The supervisors asked Mr. Weiss several general questions and then opened the discussion to the residents for their comments, questions and remarks. The next two hours of this special meeting were remarkable. One after another of the residents spoke with passion and conviction on the proposed playing fields, Although the majority who spoke were in opposition of the proposed playing fields, there was a minority of Easttown residents who spoke in favor of the proposed plans; many of these supporters with daughters at AIS. The residents frequently clarified their remarks, explaining that the issue was not about AIS. Rather the issue was about changing zoning ordinances to allow a multi-sports complex construction in a residential district. Their concerns remained unchanged as from previous meetings – traffic, safety issues, noise, associated expenses to the township and the potential lowering of property values.

Following the resident’s comments, the supervisors agreed to make a decision on proposed playing field plans. The supervisors had three choices; (1) to remain silent and do nothing; (2) vote against AIS proposed plan or (3) vote to move the AIS proposal on to township Planning Commission and Chester County Planning Commission. The supervisors asked for a 5-minute break to deliberate and then with a few remarks, once again in a unanimous vote, made the decision to vote against the proposed plan. In their remarks, several supervisors cited receiving 328 emails and letters from residents and all but 10 were opposing the proposed plan.

Although I was pleased for the many residents who had passionately fought against the playing fields, I received an unexpected bonus from attending this lengthy meeting. I left the meeting with a sense that both sides had presented their cases with civility and respect for the other side and that I had witnessed local government at its best.

Thomas Jefferson and the other founders of the American Republic, considered political discourse to be the heart of democracy. Jefferson noted, “Differences of opinion lead to inquiry, and inquiry to truth.” According to Webster’s dictionary, the concept discourse has two major meanings: (a) formal communication of thoughts about a serious subject through words (spoken or written) and (b) rationality or the ability to reason.

Civil discourse is our ability to have conversation about topics about which we disagree, and our ability to listen to each others’ perspectives. Political discourse is a method of decision-making in a democracy; last night’s special meeting represented local government and civil discourse at its best! I applaud the Agnes Irwin School supporters and the Easttown residents for their thoughtful civil discourse, but above all, Easttown Township’s elected officials receive a standing ovation from my vantage point!

Fireworks May Be Coming Early to Easttown Township . . . the Battle Lines are Drawn for Agnes Irwin vs. the Hawkins Property Neighbors . . . Tuesday, June 29, 8 PM, Beaumont Elementary School

June 24, 2010
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With the unanimous vote of defeat by the supervisors, I assumed that AIS would look elsewhere for their playing fields. The acquisition of more land for playing fields has apparently been part of the school’s long-range plan. While AIS has explored other properties in the area, they have not proven sufficient for the school’s needs. We now understand that the girl’s school from Rosemont does not take ‘no’ lightly and has orchestrated a campaign to change the minds of Easttown’s supervisors and residents.

Taking a different approach in selling this project to the community, AIS has now developed a new proposal scheduled for presentation at a special meeting on Tuesday, June 28, 8 PM at Beaumont Elementary School. In the new proposal, AIS is offering to donate 50 acres (of 108 acres) to the township as open space. In addition, the new plan includes a reduction from the school’s original proposal by one playing field and two tennis courts and a reduction to the proposed paved parking spaces. Mounting a major PR campaign designed to promote the playing fields in Berwyn, the school has marketed the land development project to current AIS families, alumnae and friends through letters and a newly designed, “Hawkins Property Information Center” website.

Rather than sitting on the sidelines, the neighbors to the proposed playing fields are organizing their own campaign to fight back. In a show of solidarity, the Hawkins property neighbors have created their own website, Protect Easttown: Working to Keep Easttown Residential Saying NO to Zoning Changes. The neighbors who oppose the proposed playing fields want to clarify that the issue is not about AIS but rather the issue is about changing the zoning ordinances. A zoning change would permit AIS’s planned multi-sports complex in a residential district, forever altering the character and integrity of Easttown Township.

I have had several emails from Easttown residents in regards to the Hawkins property but none of the communication supports the proposed AIS plan. One individual who wrote to me explained that they purchased their home next to the Hawkins property because they were told the Hawkins farm property would not be developed; as it was protected under a conservation easement. Since purchasing their home, the proposed playing fields project has developed and these owners are now faced with the possibility of living next door to a sports complex rather than the quiet, peaceful protected property that they thought would be their neighbor.

With the battle lines drawn for Tuesday’s special meeting, I decided to drive to Hawkins Farm today and see the location of the proposed playing fields. I admit that looking at the acres of bucolic fields and mature landscaping; it was hard to visualize soccer and softball fields, a turf field, tennis courts, running track, gatehouse with restrooms and a parking lot. As I stood in the shadows of Mrs. Hawkins historic stone house and barn, watching the ducks on the pond, I am challenged to believe that this proposed AIS plan would have met with her approval.

To the neighbors of the Hawkins Farm, you have my best wishes for Tuesday night.

____________________________

Additional posts on Agnes Irwin School’s proposed playing fields in Easttown Township:

https://pattyebenson.org/2010/06/03/brandywine-conservancy-easement-on-hawkins-property-cannot-be-undone/

https://pattyebenson.org/2010/06/02/agnes-irwin-school-purchase-of-berwyn-property-for-playing-fields-remains-an-open-issue/

https://pattyebenson.org/2010/03/08/what-does-a-sprawling-berwyn-estate-a-hollywood-related-socialite-a-private-girls-school-and-a-planning-commission-have-in-common/

Adoption of Tredyffrin Easttown School District’s 2010-11 Budget Set for Tomorrow Night

June 13, 2010
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Tomorrow night, Monday, June 14, the school board will deliver the 2010-11 budget for final approval. The meeting is scheduled for 7:30 PM at Conestoga High School – here is the meeting agenda (word of warning – the agenda is 101 pages so suggest reviewing it online rather than printing!). I don’t think that there are any anticipated surprises to the budget. The school board has done a great job of keeping the public informed during this tedious budget process; I’m sure that there will be a collective sigh of relief from school board member after tomorrow night’s budget vote. I have a conflict with another board meeting tomorrow, but I hope that many residents will attend, and then share their thoughts.

Knowing that tomorrow was closing a chapter on the school district budget, I was interested in an Associated Press education article that was picked up in various newspapers this weekend. The article is about teacher tenure reform and how the Colorado legislature has made a rather bold statement against the teacher union in their state. Colorado is changing the way their teachers retain their jobs; using annual reviews and student performance statistics to make tenure decisions. In case you did not see the article, an excerpt is below.

In bold move, Colorado alters teacher tenure rules

By COLLEEN SLEVIN, Associated Press Writer Colleen Slevin

DENVER – Colorado is changing the rules for how teachers earn and keep the sweeping job protections known as tenure, long considered a political sacred cow around the country. Many education reform advocates consider tenure to be one of the biggest obstacles to improving America’s schools because it makes removing mediocre or even incompetent teachers difficult. Teacher unions, meanwhile, have steadfastly defended tenure for decades.

Colorado’s legislature changed tenure rules despite opposition from the state’s largest teacher’s union, a longtime ally of majority Democrats. Gov. Bill Ritter, also a Democrat, signed the bill into law last month. After the bill survived a filibuster attempt and passed a key House vote, Democratic Rep. Nancy Todd, a 25-year teacher who opposed the measure, broke into tears. “I don’t question your motives,” an emotional Todd said to the bill’s proponents. “But I do want you to hear my heart because my heart is speaking for over 40,000 teachers in the state of Colorado who have been given the message that it is all up to them.”

While other states have tried to modify tenure, Colorado’s law was the boldest education reform in recent memory, according to Kate Walsh, the president of the Washington-based National Council on Teacher Quality, which promotes changing the way teachers are recruited and retained, including holding tenured teachers accountable with annual reviews. The new law requires teachers to be evaluated annually, with at least half of their rating based on whether their students progressed during the school year. Beginning teachers will have to show they’ve boosted student achievement for three straight years to earn tenure.

Teachers could lose tenure if their students don’t show progress for two consecutive years. That won’t be a possibility until 2015, however, because lawmakers slowed down the process under political pressure from the teachers’ union. Teachers can appeal dismissal all the way to the state Supreme Court, and school districts have the burden of proving why they should be terminated.

Under the old system, teachers simply had to work for three years to gain tenure, the typical wait around the country.

Every state but Wisconsin has some form of tenure. The protections were intended to protect teachers from being fired because of their politics, religion or other arbitrary reasons. On average, school districts across the country dismiss 2.1 percent of teachers annually, generally for bad conduct rather than performance.

Colorado’s measure is a tribute to the tenacity of freshman Democratic state Sen. Michael Johnston, a former Teach for America teacher, principal and Obama education adviser. The 35-year-old Harvard- and Yale-trained lawyer was appointed to represent a largely minority Denver district that has seen an influx of more white residents because of redevelopment of the city’s former airport. He successfully fought changes to the bill that would have eased expectations for teachers with traditionally low performing students.

Although various states have responded to the lure of federal money by moving to tie teacher evaluations to student performance, no other state specifically changed its tenure laws as Colorado did.

Many teachers and some education experts argue that tenure reform is unnecessary. Margaret Bobb, an earth science teacher at Denver’s East High School, said bad teachers are often quietly coached out of their jobs by administrators, avoiding the protracted tenure dismissal process. She contends tenure is still needed to prevent good teachers from being dismissed for running afoul of administrators and to prevent experienced — and more expensive — teachers from being let go by cash-strapped districts.

“Education is not just you and your class. It’s not an individual activity. If you’re doing your best, it’s a system you’re a part of,” Bobb said.

Proposed 2010-11 School District Budget . . . Ray Clarke’s Comments on School Board Meeting

May 11, 2010
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Last night was TESD School Board meeting with discussion of the proposed 2010-11 district budget as the major agenda item. I was attending a DuPortail House Board meeting and as always, I thank my friend Ray Clarke for attending the School Board meeting and then for sharing his notes with us. For Ray and any other who attended – I am curious what was the resident turnout like last night? Staff, teachers, parents in attendance? Many comments from the audience members?

It looks like the unfunded pension program (PSERS) problem is looming ever closer on the horizon . . . wonder if there is time before the Primary next week to have a statement from the local candidates on their proposed solution to the problem? If not before the Primary Election, I do think that we need to have public dialogue before the November General Election and know where the candidates stand on this important economic issue facing the Commonwealth.

Update from the School Board meeting budget discussion

First, a quick appreciation for District Business Manager Art McDonnell. His presentation tonight was very clear. He always seems to be on top of the details, and the budget process has chewed through a lot of those details.

The proposed budget passed with one change: removal of the $80,000 of revenue estimate for the Activity Fee. The consensus being that there is not enough time to sort through and socialize all the details for the upcoming year, but that such a fee should be considered for 2011/12. The lost $80,000 will come from the fund balance.

Board members Brake and Bookstaber proposed amendments that would slightly lower the non-contract compensation increase (to 2%) and the property tax increase (to 2.5%), but received no other votes. I’m not sure that I buy the arguments against the former, but I can see how the $7 million deficit for 2011/12 would weigh on the decision to tax at the Act 1 index. That shows how important it was for the Board to vote not to apply for exceptions back in January, forcing the expense reductions.

The good news is that Moodys affirmed the district’s AAA rating, even considering the dire financial outlook for 2011/12 and especially beyond. Now seems to be a good time to borrow what we can to assure funding to keep the facilities going, while the District tries to figure out how to offset the remaining contracted salary increases and benefits entitlements. Beyond that, hopefully new contracts will reflect the community’s own compensation experience and ability to pay. The notion of above-inflation compounded annual salary level and tenure increases is – to use a word popularized at the meeting – unsustainable.

Those actions will not address the retirement plan problem, though – a net $6 million contribution increase in 2012/13 and another $3 million on top of that in 2013/14 – by which time the fund balance would be wiped out, even with inflation-linked tax increases.

This leads to one of the most critical questions for our prospective state representatives: what – specifically – would you propose to address the unfunded pension liability? What changes in benefits? What changes in contributions, employer and employee? What aid to school districts, and from what source? Let’s hear from them.

Final Countdown to TESD’s Proposed School Year 2010-11 Budget . . . Notes from Ray Clarke

May 4, 2010
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Much appreciation to Ray Clarke for attending last night’s TESD Finance Committee and also for his thoughtful and well-written notes. I see that the EIT discussion continues . . . and also I’m glad to see that the Board is looking beyond the 2010-11 school year in their budget discussions. Here are Ray’s notes:

The TESD Finance Committee was a smooth affair tonight. Bottom line: the proposed 2010/11 budget to be taken to the full Board next Monday will call for a 2.9%, $2.5 million, property tax increase, $5.3 million of expense cuts/revenue programs, $1.4 million of fund balance contribution, plus a Contingency (which would if needed come from the Fund Balance) of $1.8 million. At $29 million, the year-end fund balance will be in good shape to support this.

The full board was present, but only the Finance Committee voted on the few issues teed up for debate. Debbie Bookstaber continued to be the greatest advocate for fiscal restraint, supporting a lower tax increase and no administration pay increases (the vote was for an increase of 2.9%), and also supporting administration proposals judged to improve the Special Education offering at lower cost – a point she won when the $300,000 cost was recommended only as an addition to the Contingency.

There was lively discussion on the pros and cons of activity fees. Kevin Buraks was a vocal supporter, citing as a benchmark the cost of non-school travel and other sports programs. I liked Ann Crowley’s idea of a all-student “Activity Fee”, along the lines of college activity fees. Participation in quality extra-curriculars is important, and a small fee which is spread across the student body can generate meaningful revenue, with no debate about what activities to include and with no direct link that would discourage participation, while users of the services will bear a small part of the cost. In the end, the administration was charged with coming up with $80,000 in fees, probably from the 1500 Middle and High Schoolers that participate in at least one sport, while perhaps the Crowley idea may be studied for future years..

I was pleased to see that there was full acknowledgment that this budget solves only the coming year’s problem. In the following year, the gap is back up to $7 million. Revenues will be flat – an assumed 1% assessed value increase offset by a decline in federal stimulus funds. So cost increases go straight to the deficit. $3 million in salaries, $2 million in benefits (net PSERS, and healthcare up 10-15%), $1 million (~5%) increases in other expenses and ~$1 million in property expense and fund balance transfers that I guess restore one time cuts from 2010/11. And that $7 million deficit is after an assumed $400,000 increase in investment earnings but no increase in debt service (capitalized interest?).

We might expect a similar plan of attack on the $7 million next year – program cuts, fund balance and taxes. Administration has proposed $2.7 million of program changes which are being studied under the Education Committee. As for taxes, maybe property owners will not be the only well to draw on. (I think I heard a comment that the Act 1 index will allow a property tax increase of only $1.7 million (2%) for 2011/12 (absent Exceptions)). The Committee handed out a draft timeline for discussion of an EIT that could reclaim taxes already paid and going outside T/E. On that, the first step for a July 2011 implementation would be a September 13, 2010 Finance Committee meeting.

All in all, it seems the Administration and Board are working diligently to maximize the value from the mix of cards in their hand and on the table

Facebook Organizes Statewide Walkout of NJ Students in Protest of Proposed Budget Cuts . . . Could this happen in TESD?

April 27, 2010
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Last night was the monthly TESD meeting. Although I have heard a few comments privately, I have not received a formal update. Did any of the readers attend the meeting? Is there any ‘new’ news to report? Speaking of school districts and budgets, a Community Matters reader sent me the following article — apparently today there has been an orchestrated walkout by New Jersey students to protest the planned budget cuts to the school district. Impressive that the students throughout the state were taken a stand against Gov Christie’s budget cuts. Organized completely with the use of Facebook — there should no longer be any doubt about the part that social media is playing with today’s events, issues, etc. Social media methods are changing the way we receive our information and updates; it is changing our future’s history.

New Jersey Students Walkout Over Budget

Thousands of high school students are walking out of class Tuesday to oppose New Jersey Governor Chris Christie’s proposed cuts to education. Fox 29’s Steve Keeley reported from Pennsauken High School outside Philadelphia, where students began filing out of the building around 8:00 AM. There are reports of students leaving classrooms throughout the state. In all, about 16,000 students pledged on Facebook to walk out of school between 8 AM and 4 PM.

There also is a confirmed walkout at Rancocas Valley High School in Burlington County. Other schools that could be targeted are Southern Regional High School in Ocean County; Hammonton High School in Atlantic County; and Middle Township High School in Cape May County. In North Jersey, MyFoxNY was at Montclair High School , where students walked out on Tuesday. Keeley says the walkout at his location in Pennsauken is “very orderly.”

The planned protest comes one week after a majority of school budgets were rejected for the first time in 34 years. Voters in 537 districts turned down 59 percent of the budgets. Schools are facing the prospect of layoffs and program cuts. The governor says layoffs would not be needed if teachers take voluntary pay freezes and begin paying part of their health insurance premiums. The Facebook site was organized by Michelle Lauto. The 18-year-old college student went to high school in Bergen County. Lauto has relatives who will be affected by the cuts.

The state’s largest teacher’s union says students are “engaging in civil disobedience” but shouldn’t walk out of classes.

Tredyffrin and Easttown Showing 23% Increase in Real Estate Sales Price During 1st Quarter

April 24, 2010
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Wouldn’t it be great if the local economy was staring to turn the corner? There is some positive news on the local real estate front. John Flanagan, realtor with Long & Foster, Devon shares this bit of real estate good news:

Tredyffrin and Easttown Township Real Estate Up 23% in First Quarter

Tredyffrin and Easttown townships have seen a steep increase in the average sales price in the first quarter of 2010 compared to the same period of 2009. The average home sold for $530,799 from January through March this year — a 23% increase over the average price of $409,115 in 2009. The average asking price also increased from $600,881 last year to $627,246 this year. It is taking longer to sell a house this year, 84 days on average as compared to 63 days last year. The Spring marker looks to be positive as well as 128 houses are currently pending settlement vs. 98 last year.

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