Pattye Benson

Community Matters

Tom Corbett

Looks like Harrisburg Wants Local School Districts to solve their Own Budget Problems

Following-up on my post from yesterday concerning T/E School District’s financial outlook and the ongoing debate on how to close the $3.5 million+ budget gap, I don’t know how much help we can expect from Harrisburg.

Yesterday, at a Senate Appropriations Committee meeting, the Acting Education Secretary, Ronald Tomalis took a hard-line when it came to school district budgets, suggesting among other things, that they should have planned better with the federal stimulus money. He stood firm in his defense of Corbett’s proposed $1.2 billion buts to public and higher education.

Tomalis attitude towards successful public school education mirrored some of those that have commented on Community Matters. He suggests that success is not measured by how much school districts spend but rather there are other significant factors . . . quality of teachers, class size, etc. that make a difference. More money spent does not necessarily correlate to better education.

In reviewing the state’s public education funding in prior years, Tomalis noted that the budget has more than doubled over the last 10 years but that enrollment has dropped by 50,000 students, which translates to a higher per student cost. Interestingly, he suggests that the improvement in academic achievement has not increased as more money has been spent. Rather than looking at the money spent per child to educate as a tool to measure success, Tomalis’ theory is that graduation rates and test scores present a more accurate picture of individual school district success.

In looking at what has driven the upward spiral of spending in public education, Tomalis directed criticism at school district spending habits in recent years. He noted that $1.1 billion has gone toward teacher and administration raises rather than educational programming since the recession began in 2008, citing labor costs are determined at the local level. According to Tomalis, Corbett’s suggestion of a one-year salary freeze for public education employees was an attempt to help the school districts with their budget problems. In addition to saving school districts an estimated $400 million with this one-year freeze, Tomalis believes that as many as 4,000 public school jobs could be saved as a result of the salary freeze.

Many have commented on Community Matters that the fate of our local school district budget deficit needs to be addressed in Harrisburg but there seems an attitude from Tomalis that the problem rests squarely on the shoulders of local elected school board members. “We hire these leaders at the local levels to make the tough decisions,” Tomalis said. “And we don’t just hire them to lead in good budget times, but we hire them to lead in tough times, too”. Strong words from Harrisburg that sound a bit like a ‘you deal with it’ attitude towards the school boards. Interesting. I am hopeful that Tomalis’ remarks also include an expectation that local state representatives are to help their respective school districts manage their budget problems.

In discussing how school districts could find savings, Tomalis suggested that districts could share superintendents or share contracts for business operations. Another cost-saving suggestion was merging of school districts. There are currently 500 school districts in the state, and it is believed that state funding could be improved with fewer districts.

Much of the discussion at the committee meeting centered on what the state budget cuts will mean to the local school districts. How are the districts going to meet the demands of their budget? For many districts, the state funding cuts are going to force local property taxes to skyrocket. When questioned about the dramatic property tax increases for some residents violates Corbett’s pledge ‘not’ to raise taxes, Tomalis vehemently disagreed. I disagree with Tomalis disagreeing . . . if Pennsylvanians end up with a higher property tax bill because of state cuts in public education spending, that is a tax increase. I do not believe by pushing the increase down to the local level, removes the responsibility of the tax increase from our elected officials shoulders in Harrisburg. Is it fair for the governor’s budget to force school districts to raise property taxes?

Sen. Andy Dinniman questioned that some groups are saying there is potential that the budget cuts could destroy public education. Tomalis denied that there would be an impact to the quality of education with the budget cuts; suggesting that the federal stimulus money was the cause for the cuts. The stimulus money was an intended one-time use and now with that money gone, the state is left with a budget hole to fill. Accordingly, Tomalis blamed the school districts for not better planning for the end of stimulus money. “If you were told again and again that this is a funding cliff that is coming in two years, and you were advised not to make an expenditure that is going to lock in for five or 10 years down the road, it does matter,” said Tomalis.

In reading the transcript from the meeting, other education topics were discussed, including voucher program (Tomalis is a supporter), teacher furloughing, charter schools, etc. In addition there was discussion at the Senate Appropriations Committee meeting centered on higher education and the severe funding cuts to state universities and colleges. For the purposes of this post, I decided to focus my comments on the local school district funding issue.

Tomalis takes his education platform to the House Appropriations committee today.

TESD School Board Meeting . . . Senate & House Hearings re School Budgets Continue

Monday’s Public Hearing on the land development authority and decision for final authority to remain with the Planning Commission took up much of the conversation yesterday on Community Matters. However, there was also a T/E School Board meeting on Monday night. Ray Clarke attended the meeting and sent along his comments which are posted below. As always, I am grateful for Ray and his coverage of school board related issues. At the upcoming Finance Committee on Monday, March 28, we will look for serious budget talk from school board members re expenses, programming and out-sourcing options.

March T/E Board Talk – video TESD has a new T/E Board Talk video available online. In the 9 min. video, school board member Dr. Pete Motel provides an overview of the T/E School District’s long-range facilities plan from the Facilities Committee meeting of February 14. The Facilities Committee meetings are not generally telecast so I highly recommend that you take the time to watch the very informative video clip from the meeting. Click here to watch the podcast.

Monday’s School Board meeting was most notable for the legislative update from Dr. Rich Brake:

  1. Senate and House Committee Budget hearings will continue through next week (the 31st, I think). The School District has a form letter on its website that you can modify and send to your representatives. (Click here for the sample letter.) Community Matters readers will likely want to add their own flavor to the letter.
  2. Our own Senator Dinniman and Senator Jeffrey Piccola are working with their Senate Education Committee to come up with relief from the infamous state mandates (to which the form letter, above, refers). Apparently there will be a press release on Tuesday. (Update: To add to Ray’s comments here, there was a State Education Committee meeting yesterday and I will have separate remarks on that topic later today.)
  3. The Senate has a version of the furloughs-allowed-to-solve deficits bill (SB 612, I think). There will be (Education Committee?) hearings on this in early April.

In response to my question about a reaction to the PSEA statement encouraging local discussions about salary freezes and other cost saving measures, the Board stated that they “are in continual discussions with the union”. If the direction from the union leadership can be translated into more than a one year expense deferral (present value at today’s zero interest rates = zero), it has the potential for a significant budget impact, so hopefully there will be something to report at next week’s workshop.

Perplexingly, Kevin Buraks reported that the Policy Committee decided to retain two consultants to tell them how to take advantage of opportunities to sell advertising rights (say, at Teamer).

The County Intermediate Unit gave a rather too slick presentation about its budget for next year, and the Board asked some good questions. Whether those can translate to any cost avoidance is maybe doubtful.

Community Matters in Pittsburgh . . . Concerns about Pennsylvania’s budget and the fate of our teachers

I received the following email from Patricia Connelly of Pittsburgh. Rather than offering a personal response to Patricia, I thought it would be interesting for Community Matters readers to respond. Any thoughts or words of encouragement to offer . . . it is apparent that the budget and concern for public education spending cuts is not isolated to our part of the state.

Hello,

I just came across your site and want to ask a question about our State Legislators. Does Pennsylvania have what Wisconsin has and that is the right to repeal an elected official? If the Governor’s budget gets passed, and it will, as someone who has lived a lifetime (66 yrs) in Pa, I believe that budget will ruin our state.

Education, please, what education? No new taxes, except for voters who will pay higher property taxes and not be able to sell their homes because the taxes will go through the roof and their local schools will be overcrowded. Today’s teachers are treated horrible and get blamed for their state’s deficit. My son is a teacher.

Anyway, is there an answer to this or do we not live in a democracy any longer?

Sincerely,
Patricia Connelly
Patricia Connelly from the Pittsburgh Area

Gov. Corbett’s Proposed Budget Indicates -9.69% Change in State Public Education Funding for T/E School District

The dust has begun to settle on Gov. Corbett’s proposed budget. Although most areas of government were not exempt from cuts, the decrease state funding to higher education and school districts may have the greatest effect on local residents.

In reviewing the governor’s budget proposal for public school funding, Sen. Andy Dinniman offered the school districts current state funding vs the proposed funding.

The table below from Dinniman’s website (www.senatordinniman.com) is interesting because it focuses specifically on the state funding to our local school districts, including TESD. The statistics indicate the current funding for public education versus the funding contained in the governor’s proposed budget. The decrease in state funding ranges from $446,269 in the Great Valley School District to Downingtown School District’s $2.9 million. The funding loss is due to Corbett’s proposed elimination of the Accountability Block Grant and Education Assistance programs.

Although Tredyffrin Easttown School District is grateful not to be in the $2 million + budget cut category of West Chester and Downingtown school districts, we are far from exempt. According to the table below, TESD proposed decrease in state funding equates to an approximate -9.69% change or $479,569.

“Governor Corbett’s proposal for basic education will be disastrous for our Commonwealth’s public schools,” Dinniman said. “Full-day kindergarten classes, reduced class sizes and after school tutoring programs are at risk of elimination.”

“The difficulty is that while the governor can wave the flag and say, ‘We’re not raising taxes,’ he has written a script that will mean significant local property tax increases and much heavier burden on local taxpayers, and that is indeed troubling,” Dinniman said.

It will be curious to see if Corbett’s significant budget cuts to public education enters in to the discussion at tonight’s TESD Finance Committee meeting. The Finance Committee is at 7:30 PM in the Tredyffrin/Easttown Administration Office (TEAO) at 940 West Valley Road, Suite 1700 in Wayne. Click here for the Finance Committee agenda.

“Don’t Read my Lips; Read my Budget” . . . so said Gov. Corbett at today’s Budget Address

Gov. Tom Corbett delivered his budget speech at midday to a joint assembly of the House and Senate, suggesting “Don’t read my lips; read my budget.” For a full text of his speech, click here:
http://www.scribd.com/doc/50290282/Corbett-Budget-Speech

In his opening remarks, Corbett’s presented an overview of his budget including “ . . The substance of this budget is built on four core principles: Fiscal discipline, limited government, free enterprise and reform. . . ” Corbett’s fiscal year 2011-12 budget totals $27.3 billion, but no new taxes.

There has been much discussion concerning the economic woes facing school districts across the state. In his budget address, the Governor supports letting the taxpayers decide . . .

” . . . Now, we all know that there’s an elephant in the room when it comes to education funding: The property tax. Too often we have seen school boards raise property taxes to avoid hard and necessary choices. It’s human nature. When you’re spending someone else’s money it’s easier to say yes than no. I believe any new property tax increases beyond inflation should be put on the ballot. If school boards can’t say no, maybe the taxpayers will. Let’s listen to the taxpayers on this one. . . “

The governor takes on the teacher unions with teacher furlough remarks,

” . . . At the same time we need to give school boards some breathing room. There are too many mandates that tie the hands of local school boards. This administration is committed to curbing these mandates, including one that violates every law of economics: the inability to furlough employees when there isn’t the money to pay them. It puts the entire enterprise of public education at risk. . . “

Specifically, how did the Department of Education fair in Corbett’s budget? A quick review indicates that education will receive an expected major cut in funding. The proposed cuts to education include a 10 percent cut in basic education (K-12), which is a loss of $550 million across the state. The budget also eliminates all $260 million in grants that are being given this year to school districts to invest in learning, including pre-K, full-day kindergarten and class-size reduction in kindergarten through third grade.

In his speech, Corbett asked public school officials to consider pay freezes; calculating that each year of this cost-saving measure would save school districts $400 million. Corbett said that he was returning the state education funding to the pre-stimulus funding level.

Addressing the state workers, unions, pensions and collective bargaining, Corbett’s approach was direct –

” . . . In Pennsylvania, we will be looking for salary roll backs and freezes from state employees as well as asking them to increase their contributions for healthcare benefits. We also need to start the conversation about the necessary repairs to our public retirement system.

I want to be clear about this to our union leaders. Collective bargaining doesn’t mean some ill-defined middle ground. It means finding the spot where things work. In this case it is going to have to work to the good of the taxpayer or it’s not going to work at all. Let’s find that place and meet there. Let’s keep things working. Neither side need lose for the taxpayers to win. We need to act on our financial challenges now, before they act on us. . . “

Although Corbett did not use the word, ‘voucher’ in his budget address, he was specific about his desire for school choice . . .

” . . . Pennsylvania needs to re-think how best to educate our children. We simply can’t work within a broken system. We need to change the whole system. We need a new set of priorities: child, parent, and teacher – and in that order. What we have now in too many places are schools that don’t work. Families are trapped in failing schools, or schools that are a bad fit. We need to develop a system of portable education funding; something a student can take with him or her to the school that best fits their needs. One size does not fit all. But as it now stands, not all get to choose. Let’s give them school choice. . . “

During his budget address, the Governor referred to the ‘Budget Dashboard’ available online. The dashboard is on the state website, is user-friendly and provides an easy access for information of individual state agencies. Here is a link to that reference:

http://www.portal.state.pa.us/imageserver/budget2011/GBD_2011.html

If you are interested, here is a link to the entire budget — all 1,182 pages. If you decide up upload the file, remember this is very large file and suggest patience.
http://www.scribd.com/doc/50277977/2011-12-Budget-Document

Corbett’s Budget, the Day of Reckoning . . . Who should be worried?

March 8, 2011 – the ‘Day of Reckoning’.

In a few short hours, Gov. Corbett will take center-stage with his much-anticipated 2011-12 budget. Government agencies across the state have every reason to be on edge, waiting for Corbett’s budget ax to swing this morning. Since Corbett promised not to raise taxes, this budget is expected to slash spending dramatically.

In the days leading up to today’s budget address, there has been much speculation met with few details from the Corbett administration. Facing a $4 billion state deficit, who should be most worried?

With federal stimulus money funding running out this year for education and health care assistance, those two areas are expected targets for major cuts.

Rumors are swirling that the governor’s budget contains $1 billion in education cuts. With many of school districts trying to manage looming deficits in next-years budgets, the severity of the anticipated state education cuts could send them over the edge. The loss of major educational spending from the state could have a direct impact on the taxpayers. If there is less education-directed funding coming from Harrisburg, will taxpayers be expected to pay higher property taxes to make up the difference? In some school districts in the state, we know the answer is ‘absolutely’.

Another probable target in today’s budget address is state workers. Of the 19 state employee unions in the state, contracts are expiring in June for 17 unions. Timing could not be worse for these union members . . . how many will lose their jobs due to budget cuts? One possible offset for state job loss, may be an increase in employee health care contributions. Will Corbett choose to push for substantial healthcare and pension contribution concessions from the union members?

A couple of other areas that may see major funding cuts are the state university system and the state parks. Colleges and universities are experiencing a decrease in aid as federal stimulus money diminishes. Combine the loss of federal aid with expected state budget cuts and college students in Pennsylvania may be facing higher tuition bills. Speculation has also swirled that the budget may contain significant funding cuts to the State Park system. Beyond diminished programming funding, it is possible that some of the parks will be forced to close.

March 8th, 2011, the ‘Day of Reckoning’ . . . as many feel the pain of Corbett’s budget. Tighten your seatbelt and brace for major cuts; the road is going to be rocky.

Public Revolt in Wisconsin . . . Can Pennsylvania be far behind?

Governor Tom Corbett is faced with some tough decisions when he presents his first budget on March 8. For the fiscal year starting July 1, Pennsylvania budget deficit is estimated at $4 – $5 billion! How will he reduce the budget shortfalls? Will public employees be safe from the chopping block?

Are their lessons for Harrisburg from Wisconsin? Cash-strapped states across the country watched the fireworks today in Madison, Wisconsin over Republican Governor Scott Walker’s proposed legislation to cut back on public employee costs and curb union power. The bill passed Wisconsin’s Joint Finance Committee and was set for a vote today. However, 16 state senators (which included 14 Democrat senators) didn’t show up for the vote. The vote on the legislation remains in limbo. At least 15 school districts closed school for a second day in a row as thousands gathered in the state capital to protest the proposed limiting of union bargaining rights. Claiming that the governor is balancing the budget on the taxpayers back, the workers are refusing to return to work if the bill passes.

Specifically, Wisconsin’s proposed legislation would:

  1. Eliminate collective bargaining rights for most public workers. The unions could still represent the workers but they would not be able to see pay increases above the Consumer Price Index, unless approved by a public referendum.
  2. Unions also could not force employees to pay dues and would have to hold annual votes to stay organized.
  3. The bill would permit local police, firefighters and state troopers to retain their union rights.
  4. Public workers would have to pay half the costs of their pensions and at least 12.6 percent of their health care coverage. That represents an average of 8 percent increase in state employees’ share of pension and health care costs. In exchange, public employees were promised no furloughs or layoffs.

Walker has threatened to lay off up to 10,000 state workers if the measure does not pass. The proposed legislation is expected to provide a savings of $30M by July 1 and $300M over the next 2 years.

Wisconsin’s budgetary pain is playing out across the country. Health care, pension contributions, collective bargaining rights . . . are all under the microscope in the Corbett’s cost-cutting budget that is coming in a couple of weeks. Will we see the events in Madison played out in Harrisburg? The Commonwealth is looking at a $4 – $5 billion deficit. Yes, billions!

With less than 60 days on the job, do you think that Corbett is prepared to take on Pennsylvania’s public workers?

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