Pattye Benson

Community Matters

Tredyffrin Township

Property Values are Falling & Real Estate Taxes are Soaring Across the US . . . What’s the answer?

Here’s an interesting read in Bloomberg Business Week – thanks to a reader for supplying the link.

The article, “Property Taxes Reach the Breaking Point . . . Local governments are raising property taxes to plug budget gaps as home values fall – and voters are getting sick of it” discusses rising property taxes and decreasing real estate values throughout the country. According to the article, because about one in four of residents mortgages are ‘under water’ across the country, many local governments and school districts are forced into increasing property taxes to meet budget deficits. However, the problem as we are acutely aware is that much of the country’s home values have fallen dramatically.

Historically, local governments have depended on property taxes as a stable revenue source. Nationally, approximately 50% of property tax revenue goes to fund school districts. How does a school district provide adequate school funding without raising property taxes beyond the scope of an individual’s ability to pay? The article looked at specific states and their property taxes – and how local governments are balancing the needs of school budgets (and deficits) with the increase in property taxes issues.

In 2010, New Jersey residents received the distinction of paying the highest average property tax in the US – an average of $7.576 (an increase of 78.7% since 1999!). Surveying all 3,100 counties in the US, residents in Hunterdon County, New Jersey paid the highest median real estate taxes per year — $8,216. As a direct result of increasing property taxes, in 2010, New Jersey capped the property tax increase by local governments at 2 percent.

Can you guess which county in Pennsylvania has the highest median real taxes paid by its residents . . . Chester County! Below is the real estate property tax information provided from Business Week for Pennsylvania:

  • Most property tax paid in Pennsylvania: Chester County
  • Median Property Taxes Paid on Homes: $4,011
  • Median Home Value: $328,900
  • Taxes as Percent of Income: 4.12%

The property tax problem is interrelated with the local school districts and includes an inequity and inadequacy inherent in real estate property taxing; and therefore filters into the problems funding public education. And today funding public education is the central problem. For years, property tax has provided the major funding source for public education but is that the solution for the 21st century?

Is a property tax capable of adequately or fairly funding the school districts, especially given the current declining real estate values? To offset Corbett’s proposed budget, which includes major funding to public education, what is going to be the answer? The bottom lines for budget deficits require school districts to either lower expenses (or rely on fund balance) or continue to raise property taxes. And as we read in the BusinessWeek article, Chester County currently has the distinction of the highest property taxes of all counties in Pennsylvania.

Discussions on the T/E School District budget will continue on Monday, March 28, 7:30 PM at Conestoga HS. The Budget Workshop will update on the current status of the 2011-12 school district budget. The meeting will focus on the budget process and discuss remaining potential budget strategies to close the budget deficit. Click here for the agenda.

Former Employee Files $2.1 Million Civil Lawsuit against Tredyffrin Township Board of Supervisors, claiming Defamation of Character & Gross Negligence . . . has the statute of limitations run out?

This week former Assistant Finance Director for Tredyffrin Township (2000-03) John Yeager filed a $2.1 million civil lawsuit against the Board of Supervisors of Tredyffrin Township. The lawsuit was filed on Monday, March 21, 2011 at the Chester County Court of Pleas. To read the 5-page legal document, click here – provides for an interesting walk down memory lane. (If you click on the link to the lawsuit, when the box opens up, click on the link in the top of the box and the document will open).

In his lawsuit, John Yeager is claiming defamation of character and gross negligence charges against Tredyffrin Township Board of Supervisors in regards to his hiring (and ultimate firing) by Harry Marrone, the municipality’s former Finance Director.

Talk about a name from the past – Harry Marrone! Anyone remember Tredyffrin’s Finance Director pre-Dave Brill . . . Harry Marrone.

Here is a brief history lesson on Harry Marrone. Harry Marrone was the township’s Finance Director, serving from 1992 – 2005. In February 2005, Marrone was arrested, charged and convicted of diverting $75K of township money to his personal bank account. (I believe that Marrone subsequently made full restitution to the township). Unbeknown to the township at the time of Marrone’s hiring in 1992, he was a convicted felon. It turns out that in 1996, while on a stated 5-month medical leave from his township job; Marrone was actually serving time at Minnesota Federal Prison for embezzling $843K from a former employer. You might wonder how was it possible that the township was unaware of Marrone’s criminal record at the time of his hiring in 1992.

At the time of Marrone’s hiring, the township did not have policy and procedures for background investigation for prospective employees in place. However, as a direct result of Marrone’s criminal action against the township, a policy for thorough background investigation of all employees was approved. A similar situation could not occur today as a result of these employment policy changes.

Fast forward to March 21, 2011; John Yeager has filed a lawsuit seeking $2.1 million in damages from Tredyffrin Township. Yeager is claiming that he would never have sought employment with Tredyffrin Township had he known that Marrone was a convicted felon. He believes that his inability to secure employment by other municipalities is due to his relationship with Marrone and the subsequent negative publicity of the case. He was the Assistant Finance Director and Marrone was the Finance Director during Yeager’s employment with the township.

Yeager believes that he has suffered defamation of character; claiming that by association with Tredyffrin Township and Marrone, his personal reputation has been harmed. In his lawsuit, Yeager accuses the township of gross negligence through their hiring of a convicted felon (Marrone) and by not having a background investigation required for all prospective employees.

I have done some research on the statute of limitations on this type of civil action. The critical aspect of filing a civil action rests with remaining in compliance with the state’s statute of limitations. This is important because once the statute of limitations expires, the deadline for filing a lawsuit has passed. I do not claim to be any legal wiz, but it appears that an individual does not have a lot of time to file a ‘defamation lawsuit’ in Pennsylvania. According to what I have read, Pennsylvania has a one-year statute of limitation for defamation lawsuits. Negligence lawsuits appear to have a two-year statute of limitations in Pennsylvania.

If I understand the statute of limitations correctly on defamation and negligence counts, Yeager’s lawsuit is not valid in Pennsylvania. I have spoken to four attorneys in regards to Yeager’s lawsuit. Only one attorney suggested there may be substance if Yeager can prove there has been an ongoing inability for employment due to his association with the township; therefore extending the statute of limitations in this situation.

I have tried unsuccessfully to contact Yeager. I wanted to ask him ‘why’ he waited so long to file the lawsuit and curious as to what was the stated reason that he was fired. I was also curious about the $2.1 million lawsuit price tag . . . wonder where that number came from?

If nothing else, the contents of the lawsuit provide us a walk down memory lane in regards to Harry Marrone. My assumption is that the lawsuit will now pass to the hands of the township’s insurance company. It would be curious to know how many of these types of lawsuits are regularly filed against municipalities and/or their elected officials.

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.

Sometimes Life Surprises You and the Right Thing Happens . . . the Planning Commission to Retain Land Development Authority in Tredyffrin!

Following tonight’s Board of Supervisors meeting was a scheduled public hearing to discuss land development authority. The Board of Supervisors were holding this initial public hearing to consider an ordinance amendment to change final land development authority from the Planning Commission to the Board of Supervisors. As the public hearing began, chair of the supervisors, Bob Lamina excused himself to leave for the airport. With Lamina’s departure, vice chair Paul Olson became ‘acting’ chair in his absence. Lamina’s last words as he departed were that he anticipated that this was an initial public meeting and the discussion would continue in the fall.

Lamina reminded the audience that a final decision on land development authority would not take place until after the review and approval of the township sidewalk ordinance. (Some have suggested that the timing of this land development authority ordinance change is directly related to the St. Davids Golf Club sidewalk decision by the Planning Commission).

Township Manager Mimi Gleason offered a background of why the land development authority was given to the Planning Commission some twenty-five years ago. Interesting to note that Tredyffrin Township is the only municipality where land development rests with the Planning Commission versus the Board of Supervisors.

Prior to tonight’s public hearing, Supervisors Kichline, Heaberg and Richter met with supervisors from Upper Merion and Easttown Townships to discuss how they handle their planning authority process. Kichline reported that these other municipality supervisors suggested that there was not ‘right or wrong’ way to handle land development authority.

Audience members were invited to comment on the proposed land development authority change. Trip Lukens, vice chair of the Planning Commission offered remarks from last week’s Planning Commission meeting. At their meeting, planning commissioners had decided rather than create an ordinance change; they would wait until the outcome of tonight’s public hearing. Other residents in attendance offered their opinion. One after another, they all said the same thing in a variety of ways . . . “if it ain’t broken, don’t fix it”. Former supervisor Judy DiFilippo also spoke in favor of leaving the land development authority with the Planning Commission. In other words, all those in attendance who spoke, completely supported the Planning Commission retaining final land development authority.

After audience members had all spoken in favor of leaving the land development authority process ‘as is’ with the Planning Commission, Supervisor DiBuonaventuro declared that he did not understand ‘why’ the Board of Supervisors was having this discussion and that as a supervisor ‘he’ was not interested in taking back land development authority. DiBuonaventuro said that there were many other important issues facing the township that needed his attention and that Planning Commission should retain this authority.

After much discussion on the topic from each supervisor, Supervisor Kichline made a motion to end the public hearing on the planning authority ordinance change; Supervisor Donahue seconded the motion. Left in charge of the public hearing by Chairman Lamina and probably realizing that he was losing the battle for further discussion, Supervisor Olson suggested the supervisors just wait on this vote and have further discussion. Supervisor Richter agreed with Olson but the other supervisors were committed to forcing a vote to end the public hearing.

With a roll call vote, Supervisors Kichline, Heaberg, DiBuonaventuro and Donahue voted to leave the land development authority with the Planning Commission and Olson and Richter voted against the motion. This vote removed any further discussion on the topic.

I believe that Bob Lamina was the driving force behind this ordinance change to place final land development authority back in the hands of the Board of Supervisors . . . and he left for the airport thinking that this public hearing tonight was nothing more than an ‘initial’ meeting with further discussion to come. He could never have expected this outcome!

Sometimes life surprises you and the right thing happens . . . tonight was one of those occasions! The Planning Commission retains final land development authority and a round of applause goes to supervisors Kichline, Heaberg, DiBuonaventuro and Donahue for ‘doing the right thing’! And the planning commissioners should feel good with their overwhelming vote of confidence from the residents!

State Rep Kampf Supports Teacher Furloughing for Economic Reasons

In today’s Main Line Media News, Alan Thomas writes an article on our state representative, ‘Warren Kampf thinks he knows how to get the Pennsylvania Family back on track”. Thomas was able to get our state rep to offer some remarks on various topics.

On House Bill 855, teacher furloughing . . .

We learn that Kampf supports the bill that would permit the furloughing of teachers for economic reasons. Current legislation only permits school districts to lay off teachers only if enrollment declines, districts consolidate or if a program is eliminated.

The proposed legislation, House Bill 855 would permit ‘economic’ as a reason to furlough teachers. The Pennsylvania School Boards Association and the state’s largest teacher union, Pennsylvania State Education Association (PSEA) are at odds over this proposed legislation. Among some, there is fear this proposed legislation could be open the door to teacher layoffs. House Bill 855 would allow furloughs to occur without regard for an employee’s seniority and experience.

According to Kamp, TESD is able to “reduce by 15 [the number of teachers] by going from five to six [teaching] periods a day. However, the law prevents furloughing.” Kampf supports the furlough legislation and thinks that it may pass before school budgets are due.

On the State’s pension problem . . .

Kampf’s solution is to “go to a defined-contribution plan for new hires, a percentage of payroll for employees, but that’s the end of it for the taxpayer . . . “

On taxing natural-gas production . . .

Kampf is OK with taxing natural gas production, as long as it is a low tax at the well-head, citing substantial revenue as the reason.

Kampf makes an interesting remark at the end of the article, referencing the taxing of the natural gas production — “The governor campaigned on no tax. My prediction – not going to happen.” Apparently, Kampf believes that Corbett is going to have to reverse his campaign promise and tax the companies conducting the drilling. Could taxing those companies involved in national gas production have an effect on job growth in those areas? I don’t have an answer, just asking the question . . .

Mill Road Bridge Closes Monday, March 21 for 9 months!

For those of us living in the western Great Valley area of Tredyffrin, tomorrow, March 21 at 9 AM, the Mill Road Bridge will close for 9 months for repairs. Many of us routinely use Mill Road to connect between Yellow Springs and Swedesford Road . . . this is not going to be fun!

From the Pennsylvania Turnpike Commission:
UPDATE: Mill Road Bridge to Close 9:00 AM March 21
Mill Road Traffic Restrictions in Tredyffrin Township Begin March 21
Bridge over I-76 to close at 9 a.m. Monday morning.
The Pennsylvania Turnpike Commission advises motorists that the bridge carrying Mill Road over the Pennsylvania Turnpike (I-76) in Tredyffrin Township, Chester County will close to local traffic at 9 a.m. on Monday morning, March 21 with a passenger car and truck detour in effect until November.

G.A. & F.C. Wagman Inc., of York, Pa, was awarded the $4.2 million contract to replace the bridge in December 2010. The contractor anticipates the new bridge will be open to traffic before the end of the year. The bridge is located 3.5 miles west of the Valley Forge Interchange (Exit #326) and 10.5 miles east of the Downingtown Interchange (Exit #312).

Preparations for the mid-April demolition of the 60+ year old Mill Road Bridge began earlier this month when the contractor installed advance warning signs on the Turnpike mainline and local roads alerting motorists to the March 21 bridge closure and traffic restrictions. Detour signs have been posted along the two detour routes approved by the township and PennDOT for the duration of the bridge replacement project expected to last nine months.

Starting Monday morning (Mar. 21), through traffic traveling south on Mill Road will be detoured at Duportail Road and from the north at Yellow Springs Road where they intersect at the approach of the bridge.

Passenger cars will be directed over Duportail Rd., Swedesford Rd., State Route 252, Valley Forge Rd. (SR 252), Valley Creek Rd. (SR 252), and Yellow Springs Road to Mill Road (approx. 5.8 miles).

Trucks will follow Duportail Rd., Swedesford Rd., Moorehall Rd. (SR 29), and Yellow Springs Rd. to Mill Road (approx. 9 miles).

Looking at Local School Districts, Does the Buck Stop with Taxpayers?

As Tredyffrin-Easttown School District works through the 2011-12 budget, it is interesting to watch how other school districts are handling their budget shortfalls, particularly in light of the public education cuts in Gov. Corbett’s proposed budget.

This week the Radnor School District and the Radnor Township Education Association reached a tentative agreement for a new teacher contract. The collective bargaining negotiations between the school district and the teacher union have been going on for over a year. Details of the contract will not be released until after the teachers union presents the contract to its members for ratification early next week. As our school district neighbor, I wonder if their contract will have any influence on TESD teacher contract discussions.

Another neighbor to TESD, the Phoenixville Area School District (PASD) has major budget issues. As the dust settles from the cuts contained in Gov. Corbett’s proposed budget, a tax hike of 8.75% is needed to close the gap – twice as much as the district had anticipated. Previously, the school district budget included a 4.43% tax increase but with the loss of state funding, they will require an additional 4.32% . . . a tax hike of 8.75%!

At the Pottstown School District meeting this week, their school board took a stand with three interesting votes:

  1. The school board rejected the idea of “forward borrowing” of $23 million without voter approval. (The district has authorization for $28 million for work on the district’s elementary schools and the vote would have increased that borrowing amount by $23 million).
  2. The school board approved the extension of a contract for mid-level administrators and principals that freeze their salary for one-year. (Cost savings: $30K)
  3. The school board accepted an offer by the district’s three top administrators to freeze their salaries for one-year. (Cost savings: $15K)

Prior to the vote, the school district was considering a 4-year contract for administrators and principals to include a minimum 1.5% salary increase plus potential merit pay increases. According to the district superintendent, following the announced funding loss from the state was announced, these employees volunteered to take pay freezes for one-year. Gov. Corbett’s proposed budget will provide $3.1 million less state funding to the Pottstown School District.

For comparison sake, I checked on the salaries of administrators in the Pottstown School District. The top 10 highest paid administrators in the Pottstown School District earn in the range of $102K – $119K per year; their superintendent has a base salary of $152K.

The Pottstown school board hopes that the administration’s one-year pay freeze sends a message to the teacher union, Pottstown Federation of Teachers. According to Pottstown Mercury, www.pottstownmercury.com , Pottstown School District president thanked the administrators for the one-year salary freeze, “I want to thank you for pulling your belts a little tighter for us, I hope some of the other school districts around here see what you’re doing for us, how you lead by example.” There is an unresolved contract between the district and the teachers union. The teachers are currently without contract and last month rejected the independent fact-finders report that the school board accepted unanimously. Sound familiar . . . Unionville-Chadds Ford School District currently have a similar situation with their teachers union.

I guess TESD can take solace in knowing that we are not alone. With school districts facing looming deficits in their budgets and increasing expenses, Corbett’s proposed budget does not offer much hope for help from the state.

Corbett’s campaign promises included no tax increase but it seems to me that he has just pushed that job down to the local school districts. School districts are expected to balance their school budgets, but how? Not much in the way of choices . . . school boards are forced to make education cuts or they raise taxes. Does no responsibility lie in the shoulders of our elected officials in Harrisburg? How can they expect citizens to pay more in property taxes than they can afford?

Or . . . does the buck just stop with the taxpayers?

Philadelphia DA Seth Williams . . . the Avenging Altar Boy Prosecuting Catholic Priests

I was emailed the following New York Times op-ed article by Maureen Dowd. Although graphic in its contents, I think it is important to keep the story alive — we owe this much to all children who have suffered. I salute Philadelphia district attorney Seth Williams, the ‘avenging altar boy’, for being the peoples’ champion. Ms. Dowd describes Mr. Williams prosecution of Philadelphia priests, “. . . the law sees no collars, except the ones put on criminals.”

In reading some of the 300+ comments to the New York Times article, a particular comment caught my attention, “For every priest that was involved in these horrific acts there are equal numbers of foster parents, police officers, teachers, ministers, scout leaders, and other ‘trusted’ protectors of children that have committed the same violations of our children. They too are protected by systematic cover-ups by those in charge. I am happy to see actions being taken to stop this depravity, but lets not delude ourselves that the Catholic Church is the only culprit.”

This comment serves to remind us that betrayal and violations of our children is not confined to the Roman Catholic Church.

Avenging Altar Boy
By Maureen Dowd
Published: March 15, 2011
New York TImes, www.NYTimes.com
PHILADELPHIA

The district attorney is burning a eucalyptus-spearmint candle on his desk.

“I think the press looks down upon the D.A. drinking Jack Daniels during the day,” R. Seth Williams says with a broad smile, “so I light my little stress-relief candle.”

It’s understandable if the former altar boy at St. Carthage in West Philly needs to light a votive. The 44-year-old Catholic, who still attends Mass with his family at the same church, now called St. Cyprian, is the first U.S. prosecutor to charge a church official for a sickeningly commonplace sin: Endangering children whom the Roman Catholic Church was supposed to protect by shuffling pedophile priests to different parishes where they could find fresh prey.

Williams, the first African-American elected district attorney in Pennsylvania, was an orphan given up by his unwed mother. He was put into two foster homes before he was adopted at 20 months old by a Catholic family.

“I grew up treating the hierarchy of the church kind of like rock stars,” he said in his 18th floor aerie, where he keeps a small iron crucifix and a cross fashioned from Palm Sunday fronds. “If you’re going to meet the cardinal, you’re supposed to kiss the guy’s ring, all this stuff. But it is what it is. I wish I knew the Latin translation for that.

“There’s no get-out-of-jail-free card for raping, sodomizing, groping, doing anything wrong to kids.”

Msgr. William J. Lynn, who served from 1992 to 2004 as the secretary of clergy reviewing sexual abuse cases for then-Cardinal Anthony Bevilacqua, appeared in court Monday. He is charged with felonies for allegedly helping the cardinal cover up molesters and transferring them to other parishes.

“It was a conspiracy of silence to ensure the church’s reputation and to avoid scandal,” said Assistant District Attorney Evangelia Manos.

Monsignor Lynn, a round, ruddy man in black priest’s garb, sat silently in court behind his two lawyers — paid by the archdiocese — as a cheering squad of priests and parishioners watched.

Lynn’s co-defendants sat beside him: a rabbity-looking Rev. James Brennan, 47, charged with raping a 14-year-old boy named Mark in 1996 in his apartment; and the unholy alliance of a priest, the sepulchral Charles Engelhardt, 64, a defrocked priest, Edward Avery, 68, and a former Catholic schoolteacher, Bernard Shero, 48 — all charged with raping or sodomizing the same 10-year-old altar boy 12 years ago.

Lynn’s lawyer, Thomas Bergstrom, told reporters that the charges against his client were “a stretch” and that he was pleading not guilty.

And Richard DeSipio, one of Brennan’s lawyers, went on the attack against his client’s accuser, now 29. “Their witness is in prison in Bucks County for stealing his sister’s credit card and using it,” DeSipio told Mensah Dean of The Philadelphia Daily News. “He’s a convicted liar.”

On a local radio show on Tuesday, Brennan — a priest suspended by the church in 2006 — said he was uninterested in a plea deal, and his lawyer continued to paint the accuser as troubled. Even with a global scandal that never seems to stop disgorging disgusting stories, the Philadelphia grand jury report is especially sordid.

It tells the story of a fifth-grade altar boy at St. Jerome School given the pseudonym Billy. Father Engelhardt plied him with sacramental wine and pulled pornographic magazines out of a bag in the sacristy and told the child it was time “to become a man,” the report says.

A week later, after Billy served an early Mass, the report states that Engelhardt instructed him to take off his clothes and perform oral sex on him. Then the priest told the boy he was “dismissed.”

“After that, Billy was in effect passed around to Engelhardt’s colleagues,” the report says. “Father Edward Avery undressed with the boy, told him that God loved him,” and then had him perform sex. “Next was the turn of Bernard Shero, a teacher in the school. Shero offered Billy a ride home but instead stopped at a park, told Billy they were ‘going to have some fun,’ took off the boy’s clothes, orally and anally raped him and then made him walk the rest of the way home.”

Billy fell apart and turned to heroin.

The report says Brennan knew Mark from the time he was 9. When he was 14, the priest arranged with Mark’s mother for a sleepover. “Brennan showed him pornographic pictures on his computer, bragged about his penis size and insisted that Mark sleep together with him in his bed.” Then the priest raped him as he cried, according to the report. Mark also fell apart and attempted suicide.

Out of the church’s many unpleasant confrontations with modernity, this is the starkest. It’s tragically past time to send the message that priests can’t do anything they want and hide their sins behind special privilege.

In Seth Williams’s city, the law sees no collars, except the ones put on criminals.

Just In . . . State Teacher Union Encourages Local PSEA Members to Consider One-Year Pay Freeze

Seemingly to show support for the severity of the state’s economic situation, the Pennsylvania State Education Association (PSEA) is encouraging its local teacher union members to consider Gov. Corbett’s request for a one-year pay freeze in the following press release. 

Could this be the answer to school district problems?  Whether it is the possibility of furlough and school voucher legislation or the current anti-union sentiment that is sweeping the country, I think we should view this as a positive message from PSEA.  Do we know how much revenue would be saved by with a one-year pay freeze in TESD?

PSEA President responds to Governor’s call for a one-year pay freeze

PSEA President Jim Testerman released a March 16 statement responding to Gov. Tom Corbett’s call for school employees to consider a one-year pay freeze.

Testerman released the following statement:

“The education professionals in the Pennsylvania State Education Association have been willing to be good public partners and tackle tough issues before, and we’re willing to do it again.

“We hope to prevent a $1 billion cut in state education funding, but we also realize that tough economic times have hit many of our public school districts.

“We have serious concerns about some of Gov. Corbett’s proposals, but we want to do our part to ensure that our students’ education does not suffer as a result of the worst recession since the Depression.

“As part of his budget proposal, the governor requested that education employees accept a one-year pay freeze. The governor stated that this decision is ‘determined at a local level and arrived at by contract and collective bargaining.’ As president of the Pennsylvania State Education Association, I concur.

“I encourage PSEA members to seriously consider this request.

“Today, I sent a letter to the presidents of all PSEA locals.  I encouraged them to enter into discussions with their school boards about a pay freeze or other cost-saving measures to maintain class sizes and academic programs.  In some communities our members have recently agreed to economic concessions to maintain class sizes and academic programs. Their contribution must also be recognized.

“Such cooperation can help to preserve the academic gains made in Pennsylvania’s public schools over the last decade.

“Our scores on National Assessment of Educational Progress, the ‘Nation’s Report Card,’ are among the country’s best.  Our students showed progress in all academic subjects and grade levels.  And seven of 10 graduates are going on to higher education.

“We need public partners to join us in our effort to advocate for our public schools.  PSEA calls on parents, caregivers, and community leaders to ask legislators to prevent the cuts to school funding.  A pay freeze alone will not be enough to preserve the programs our students need to succeed in the future.

“Despite the difficult economy, we must remember that students only get one chance at a quality education.  Pennsylvanians must not permit this recession to rob our children of the opportunity public education provides to prepare them for a better future.

“Pennsylvania’s schools are among the best in the nation.  PSEA remains steadfast in its commitment to provide a quality education to the 1.8 million children who attend our public schools.”

Some Pennsylvania School Districts Look at Early Retirement Incentive Plans to Help Budget Deficits . . . Could this be a less-painful option?

It is interesting to note how other school districts are exploring different options internally to reduce expenses.

Apparently, Tredyffrin Easttown School District joins the ranks of Bucks County’s Morrisville School District to consider outsourcing custodial services in addition to an early retirement plan to its teachers.

According to a recent article in www.phillyBurbs.com Morrisville School District’s school board suggests that these measures are required due to “out of control spending due to increases in salaries, benefits and pensions.”

Although Morrisville School District is ‘only’ facing a $2.5 million deficit, they are facing some of the same problems as TESD. This district is offering a special ‘early retirement incentive plan’ to teachers as a way to reduce costs. Teachers have until March 31 to decide whether to take this option.

Has TESD considered some form of an early retirement incentive plan for teachers? It is possible that I missed this discussion in school district. For those that have followed the school district closely, any information on this topic is appreciated. As school districts across the state are struggling to balance their budget deficits, I find it of interest to look at options that other school districts have explored.

Looking beyond Morrisville School District, I wondered if other school districts were exploring an early retirement incentive option as a cost-saving measure. Middletown Area School District (MASD) in Dauphine County, www.raiderweb.org (10 miles from Harrisburg) is also offering a retirement incentive plan to teachers in an effort to reduce their gaping deficit. For those teachers that qualify, they have until March 21 to decide on this option.

The MASD early retirement incentive is available to full-time employees covered by the teacher union collective bargaining agreement who have at least 30 years of district service by June 30, 2011 and incur no more than one additional year of service under the state employees retirement system (PSER) after retiring from the district. Employees 55 or older with 20 years of service by June 30 also can retire under the same conditions.

Benefits of MASD’s retirement incentive include a $20K one-time contribution into employees’ 403(b) accounts that won’t be included when computing their annual salaries for retirement benefits. Health care benefits under terms of their current teacher union contract which expires June 30, 2012 will also be made available if a “sufficient number” of eligible employees retire under the incentive.

Could an early retirement incentive plan be a ‘less-painful’ way of reductions of costs for school districts in budget crisis? In Morrisville School District and Middletown Area School District, their 2011-12 budgets will be ‘tweeked’ based on how many teachers take advantage of the retirement incentive. These kind of early retirement incentive plans are similar to models often seen in private industry for employees. Understandably, it is too late to enact an early retirement incentive plan for the 2011-12 school district budget in TESD, but what about for the following year’s budget?

Any discussion of an early retirement incentive plan would take cooperation between school districts and teacher unions. However, with talk swirling in Harrisburg of teacher furlough legislation, I would think the conversation of early retirement incentive plans would be a conversation that teacher union leaders might welcome.

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