Pattye Benson

Community Matters

Tredyffrin Easttown School District

The Money is Running Out for Some Pennsylvania School Districts . . . Can they keep their doors open?

One school district in crisis . . . can others be far behind?

The Duquesne School District is located in Allegheny County, a suburb of Pittsburgh. A former steel mill town, Duquesne is no newcomer to hard times. The last couple of decades the population in this cash-strapped community has steadily declined.

In the age of Big Steel, towns like Duquesne, Pennsylvania were the backbone of America’s industrial might . . . a beacon for thousands of immigrants looking for a better life. But that was then . . . this is now. Once a booming steel mill town, Duquesne began its downward economic spiral in 1985 with the closure of a U.S. Steel facility. The largest employer in town, U.S. Steel provided a steady tax base and, more importantly, jobs for the hundreds of kids coming out of Duquesne High School each year. The plant closed and with its closure, so went the jobs. Unemployment figures soared, economic decline began and hope for the future has slowly disappeared.

In 2007, Duquesne’s only high school was forced to close . . . the school district can only afford to educate its young people in grades kindergarten through 8th grade. If you want a high school education, you must go to anther school district. The state declared the district financially distressed in 2000.

Fast forward to 2011 and Corbett’s proposed massive public education funding cuts; what does it mean for the future of Duquesne and its children? U.S. Steel decided it was no longer profitable to keep its doors open in Duquesne but the school district does not have that option. For the record, currently Duquesne School District relies on $11 million of its $14 million budget from state funding. Corbett’s proposed budget will mean a loss of $2,000 in state funding per student in the Duquesne School District where more than half of the students are from low-income families. Raising property taxes in this cash-strapped district is not an option.

Declining tax bases in some areas of the state are forcing those school districts to the edge. As other school districts across Pennsylvania struggle to keep foreign languages and the arts in their curriculum, Duquesne School District fights just to keep their doors open. The Duquesne School District’s proposed ‘bare bones’ budget for 2011-12 includes the elimination of 35 teaching jobs, freezing salaries and increasing class sizes to 23-to-26 students per class. Their pared down program includes no academic coaches, no tutoring, no field trips, no sports teams or no extra-curricular activities. Is this skeleton programming a sufficient education?

If there is no change to the proposed state budget cuts to public education, Duquesne School District may have to close its remaining school doors. Duquesne School District is but an example of a Pennsylvania school district on the brink of complete failure. But it does beg the question, can others be far behind?

It is important to look beyond our own backyard as we focus on the finances of our own school district and its budget deficit.

Tredyffrin Resident Christine Johnson Says NO to SB 1 . . . Making your Voice Count!

There has been much discussed about the proposed school voucher bill, SB 1. But Tredyffrin resident Christine Johnson is doing more than just talking . . . she’s taking her voice and saying NO to SB 1. Christine adopted her ‘Resolution Opposing Senate Bill 1’ (below) and sent it to Senator Andy Dinniman and State Rep Warren Kampf. According to Christine, ” . . . they need our support in order to say ‘NO’ . . . “

Creating change starts with one person –I am proud of Christine and applaud her effort to show all that your voice can count! If you are interested in following Christine’s example, here are email addresses:

State Rep Warren Kampf: wkampf@pahousegop.com
State Sen Andy Dinniman: andy@pasenate.com

RESOLUTION OPPOSING SENATE BILL 1

By Christine E. Johnson
986 Mt. Pleasant Avenue
Wayne, PA 19087

WHEREAS, school districts in the Commonwealth have continued to make steady gains in academic achievement and create innovative and effective
programs and curricula for all public school students and Pennsylvania is the only state in the nation to have increased academic achievement in every subject, at all tested grade levels and for all ethnic, racial and
economic subgroups of students from 2002 through 2008; and

WHEREAS, the implementation of a tuition voucher program, over-expansion of any existing tax credit program or incentivizing a student’s transfer out of the public education system in any way takes financial resources away from traditional public schools and diminishes the great strides that have been made in those schools and increases the burden on property taxpayers and their resident school districts working toward greater academic successes; and

WHEREAS, unlike nonpublic and private schools, public school districts in the Commonwealth accept and educate children regardless of race,
ethnicity, gender, religion or academic talents, as opposed to those institutions that are able to reject applicants based on low academic performance, discipline issues or any number of other factors; and

WHEREAS, unlike nonpublic and private schools, public schools in the Commonwealth are held to strict accountability standards in an effort to
measure student achievement and academic progress, unlike private and parochial schools which are not required to give state assessments or
publish student achievement data; and

WHEREAS, there is no consistent evidence to demonstrate that students who utilize vouchers make any better academic progress in nonpublic or private schools than they did prior to transferring; and

NOW THEREFORE, BE IT RESOLVED that Christine E. Johnson opposes Senate Bill 1 and any other legislation or any effort by the General Assembly to implement a tuition voucher program in the Commonwealth or any other program that would have an effect similar to that of a tuition voucher program, and encourages its elected officials to oppose the same.

BE IT FURTHER RESOLVED that Christine E. Johnson directs her legislators to take immediate action about the need to oppose Senate Bill 1 and the negative consequences on the school district and the public education system at large and to provide a copy of this resolution to them.

BE IT FURTHER RESOLVED that Christine E. Johnson will encourage others, including parents, students and district taxpayers, to contact the
Pennsylvania General Assembly to convey the importance of supporting public education in the Commonwealth.

Adopted this 31st day of March 2011.

Signed,

Christine E. Johnson

PA State Senatorial Candidate Tom Houghton has Questions for Pileggi and Corbett . . . Tredyffrin Needs to Ask the Same Questions of Kampf and Dinniman

Tom Houghton, former State Representative for Chester County’s 13th House District and a recently declared Democratic Pennsylvania State Senate candidate, released the following editorial, ‘Right to Know’ Stance on Budget’. In the 2012 senatorial race, Houghton will be opposing Senate majority leader, Senator Dominic Pileggi (R), who represents the 9th Senatorial District in Chester and Delaware counties.

Although Tredyffrin Township is not included in the 9th Senatorial District, Houghton’s remarks on issues are equally apropos for our community. As a resident from southern Chester County, Houghton is calling on his elected officials to answer questions regarding school budget deficits, Marcellus shale natural gas severance tax and Gov. Corbett’s proposed budget cuts to public education funding. I support Houghton’s ‘Right to Know’ request for those that serve his community.

Taxpayer accountability from all elected officials is a right that we should all expect, and that includes State Rep Warren Kampf and State Sen Andy Dinniman. Houghton’s concerns and questions to leadership, echo those that we need to ask here in Tredyffrin Township. I urge Kamp and Dinniman to provide answers to us, the taxpayers. In Houghton’s words, “. . . Constituents deserve nothing less. We deserve the ‘Right to Know’.”

‘Right To Know’ Stance on Budget

For a legislator who passed the ‘Right to Know’ law, Senator Pileggi certainly always seems to keep his constituents in the dark.

Last week I attended an Avon Grove School Board meeting along with a few hundred anxious parents. The school board was courageous in calling the meeting to break the news to the community that they not only were considering raising property taxes by 5.9 percent but were seriously weighing cutting the middle school athletics program, mostly due to the brutal state education funding cuts being proposed by Governor Tom Corbett. They even reached out to the newspapers in the area to inform the community of their budget situation.

The Board has already cut millions of dollars from their budget and are essentially informing the community that it would be nearly impossible to solely cut their way out of this shortfall in state funding.

Gov. Corbett announced a 200 million dollar corporate tax giveaway just days before proposing these draconian education cuts to K-12, state and state-related universities.

As a community, all of us deserve an explanation from our elected state officials as to their position on the proposed state budget.

Senator Dominic Pileggi should hold forums around his district to explain the budget process and where he stands on the proposed cuts. Reaching out to his constituents through the area newspapers would also be helpful.

He needs to answer questions like:

– Does he support the 200 million dollar corporate tax break, especially when college students and every resident paying property taxes is being asked to sacrifice?

– Will he fight for a Marcellus shale natural gas severance tax to gain revenue to help avoid or greatly reduce these education cuts?

– Why are we the only state in the nation that does not levy this severance tax (even Texas and West VA has a severance tax)?

– Why did the Senate, under his leadership, break the deal with us House Democrats, to pass a severance tax by October of 2010?

– Why does he not support finding alternative means of funding our schools other than property taxes, especially now when cutting state education funding only forces school boards to raise property taxes?

– Why does he not support legislation I introduced last term that calls for our casinos to surrender $250 million dollars they use for promotional giveaways – to the property tax relief fund?

These are just some of the questions that need to be answered. Why is Senator Pileggi refusing to face his constituents or inform us of what’s going on with the proposed state budget?

As your state senator, as I did as a state representative, I will be in constant communication with residents through the press and will hold forums to explain what is going on in Harrisburg and where I stand on important issues. Constituents deserve nothing less. We deserve the ‘Right to Know’.

Tom Houghton,
Former State Rep. and candidate for State Senate – 2012 Election
London Grove Township

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.

T/E School District Budget Options . . . Pay Waiver, Demotion & Furlough Discussion

I attended the T/E marathon ‘Budget Workshop’ last night. For nearly 3 hours, the school board members and district administration waded through 30+ slides which contained so many charts and graphs, it was hard to take it all in. The slides and their detailed explanation took up the vast majority of the evening with probably the last 30 min. devoted to audience questions. The workshop included three new cost-saving ideas that were ‘new’ to me – a ‘pay waiver’, demotion and furlough.

There was a pivotal slide labeled ‘Options to Close Remaining Shortfall’ that grabbed my attention. Slide #26 indicates the remaining budget shortfall (after taking budget strategies) at $3,570,509. Two options listed to close the shortfall – (1) Outsourcing of custodial services $950K and (2) ‘Pay Waiver for remaining staff (TEEA and TENIG) $3,000,000. We understand the outsourcing option; an RFP has gone out with a return date of early April. An announcement detailing the results of the RFP should be available early May.

What is a ‘pay waiver’? If I understood it correctly, the school district would ask the teachers union not to take their contract guaranteed pay increase for 2011-12. This would be a one-time pay waiver (a give-back of sorts). Unlike a salary freeze that could be retroactive (as in the 6-month salary freeze in Radnor’s recent contract) or a salary freeze the first year but larger increases in the second year of a contract, a pay waiver would not be made up in a future contract. There was no indication that TEEA has been approached with this proposal. Although several school board members praised the teachers, they also suggested the reality and the severity of the economic times, call for a ‘shared sacrifice’ by the taxpayers, teachers, etc. This is a bold proposal and it will be interesting to see if there is any comment or discussion from TEEA.

The other ‘get my attention’ moment of the evening was Dr. Waters suggesting that the district would explore ‘demotion’ and ‘furlough’ as possible ways to close the shortfall. He cited PA School Code 1151 in regards to demotion. I did a bit of research and determined that Section 1151 of the School Code provides for the demotion of professional employees. While this section does not make mention of demotions for economic reasons, case law has established that school districts are permitted to demote professional employees for economic reasons, so long as such demotions are not arbitrary and capricious under the law. Expanding the provisions of Section 1124 would similarly allow school districts to furlough employees for economic reasons.

What would this mean for the school district budget? Far less staff would be affected and programming would be maintained. It appears that by law, the school district superintendent would be empowered to review the entire school system as a whole to identify where reduction in staff could occur. Very interesting news. I sensed a real determination from Dr. Waters that he was doing everything in his power to help with this budget deficit. Although he certainly did not say that he would evoke demotion or furlough measures, there will be further discussion on the subject.

Although there was much other discussion in regards to cost-cutting measures, these particular suggestions were ‘new’ to me and caught my attention. I left the meeting last night with a real sense of the seriousness of the financial situation and of the battle to close the $3.5 million remaining shortfall.

I would strongly suggest that State Rep Warren Kampf and Sen Andy Dinniman need to play a role in our local school district issues – I’d like to see a public forum with their attendance. I believe that I recently read that Kampf attended a Phoenixville School Board meeting (or one of their subcommittee meetings?). If Kampf or one of his staff workers is reading Community Matters, I am making a public appeal that he attend a T/E School Board meeting. . . . aside from serving as our State Representative, Kampf lives in the T/E school district and I would like to see him personally involved in our school district’s budget issues.

Ray Clarke also attended the budget workshop and provided his editorial comments.. It is interesting to have both perspectives of the evening and I thank Ray for his notes below:

Tonight’s TESD “Budget Workshop” did not really live up to its title, but was nevertheless an informative, if a little selective, exposition of the underlying forces driving the district’s finances – and driving them to steep deficits.

  • The real estate-based gravy train has run off the rails – the tax base is declining and there’s no sign of recovery in transfer taxes
  • The state is exacerbating the problem – reduction in the social security reimbursement, flat special education funding despite increasing enrollment, and a tax increase formula that will limit property tax increases to around ~1% for at least the next couple of years. There’s even talk of eliminating “Exceptions” and reducing the PSERS match – but that last would just be insane.
  • As it is, PSERS will be the biggest expense increase – up $1 million each year for the next two years, $1.5 for each of the two years after that and $3.5 million in 2015/16
  • The district has reduced staff by 60 in the last two years, but the vagaries of grade and school specific demographics will require a staff increase next year despite likely flat enrollment.
  • New news: there are tools within the PA School Code that would allow for selective staff “demotions” to meet budget deficit situations. This may be a way to implement previously attrition-dependent changes such as the teaching period changes at the high school.
  • With all known realistic strategies and a 3.77% property tax increase including the now-approved exceptions, the 2011/12 deficit would still be $3.6 million
  • Other ideas continue to be studied: $400,000 of reasonably tangible and realistic notions, and maybe an equal amount of less tangible but possibly realistic ones. A few multi-million dollar ideas with profound impact on the culture and educational quality are further on the list, but seem likely only in extremis.
  • Which brings us to the big issues, laid out individually by the administration: outsource custodial services and obtain a “pay waiver” from both the TEEA and TENIG. There was no indication that the Board has received any proposal from the unions, much less one that would forgo (“until better times”) $3 million of pay increases. However, there was considerable emphasis on the need for shared sacrifice, and it is starkly apparent how such a move could bring the deficit somewhat back into range. There was no commentary from the TEEA – unlike from the TENIG representatives, who, as at previous meetings, appealed to emotion rather than the pocket book. As that process evolves, it would be great if TENIG could quantify the cost savings they claim they could bring to the district.

Bottom line: my view is that the district continues to make the best of the hand it has (including of course, the cards picked up from generous previous contracts and other decisions). The key question: what will the unions do to show that they can remain relevant, and be part of the solution, not part of the problem?

And even if the deficit can be reined back some, PSERS remains the issue.

There was an interesting chart that documented the Employer Contribution Rate from 1988 to now. The rate started out at 19%, declined for 13 or 14 years to 1% (thanks to a booming stock market), at which point the benefit multiplier was increased to 2.5, COLA rules changed and bubbles burst, whereupon the ECR started up again, to next year’s 8.65% and then 33.37% by 2015/16 and for the next decade, even after last year’s Harrisburg “fix”. Employee contributions have been consistently 7.5%.

So, how to fix this (and the related SERS for state employees)? Any solution will likely have to be approved by taxpayers. If the problem is dumped in the local lap, the increases are fundamentally unaffordable without a referendum: be it for, say, 10% property tax increases or an equivalent EIT. Even if Harrisburg rose to the occasion, that might also involve a courageous appeal to voters: for a change in the Constitution (“Any unilateral substantial change in public employee pension benefits that constitutes a “net detriment” to the employees is a constitutionally impermissable impairment of the employment contract”), or for issuing a Pension Bond to deal with the unfunded liability.

Now there’s something to write to Dinniman and Kampf about!

In a Show of Union Solidarity – Pennsylvania Teachers Unions Joining Forces with AFL-CIO

We have watched the Governor of Wisconsin, Scott Walker and his battles with state employees over legislation to take away collective bargaining rights. Walker’s actions hit a cord across the country; public employees are drawing the battleground in Ohio, Florida, from coast to coast. Now we see it in Pennsylvania.

The proposed $1 billion budget cut to public education by Gov. Tom Corbett has driven three teachers unions in the Lehigh Valley area to organize. Because of school district budget deficits and state funding cuts, hundreds of teacher jobs are on the chopping block in the Lehigh Valley . . . the teacher unions are fighting back. In a show of solidarity, 3,500 teachers in the Allentown, Bethlehem Area and Easton Area school districts have voted to unite with union members from the Lehigh Valley Labor Council and Pennsylvania AFL-CIO. The teachers are joining forces with their brothers and sisters in the manufacturing, building and service unions to fight Harrisburg. The AFL-CIO membership in Pennsylvania has 900,000 union workers. Together, the unions believe they need to take a stand for the working middle class family in Pennsylvania.

With organized labor getting behind the teachers, one could guess that means additional financial support to help fight Harrisburg. Union members believing that Corbett’s budget is an attempt to balance the budgets on the backs of the working class, these 1.1 million voices are saying ‘no’ to the Governor and his proposed budget cuts for public education.

Exactly what these ‘voices’ have in mind for Harrisburg is yet to be seen. And I wonder if the TESD teachers will decide on a similar path to the Lehigh Valley teachers as the school board works to balance the district budget and as the calendar moves closer to contract negotiations.

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.

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.

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 . . .

Outsourcing of Custodial Services . . . Scapegoat for TESD Budget Woes or a Way to Save Educational Programming

I have mixed feelings on the issue of outsourcing of TESD’s custodial services. If you simply look at the bottom line, there is a cost savings of almost $1 million to the school district if the custodial services is outsourced. The school district is facing a major budget deficit and the contracting of support services not related to curriculum delivery is one option under consideration by school board members.

Several custodial members of TENIG (Tredyffrin Easttown Non-Instructional Group) union spoke at the last TEDS Finance Committee, and there are other issues to consider in making an outsourcing decision. Custodial employees number under 30% of the total membership in the TENIG union — 49 custodians. As we heard at the Finance Meeting, many of these custodian union members are long-standing district employees. Many of the custodial employees are local residents and there is growing concern whether or not they could find another job, should their work be outsourced. How will they support their families? As neighbors in the community, should this be a concern? Should school board members show compassion for the custodial employees when deciding whether to outsource the service?

I get the sense among some of the TENIG custodians that they feel they have become the target in the school district’s budget woes. We understand that privatization is seen as a way to preserve the classroom and its programming, but it does come with a human toll.

Outsourcing services that historically have been in-house functions with long-time employees is a major shift in institutional culture — despite the cost savings that could be realized. Probably the biggest and most difficult obstacle to outsourcing the custodial support service is the ability of staff and community to accept the change, or even the consideration, in spite of the current budget pressures and economic realities.

Can outsourcing provide the same level of productivity and quality of job performance as the current union employees? One could argue that the current custodians have developed a connection with the schools and the students. As a result, these employees may argue that they will do a better job than an outsourced company who does not share that same level of ‘ownership’ in the school system.

The RFP for outsourcing of services was issued by the school board with a deadline for bids in early April. Once the outsourced service provider bids are returned, it will be interesting to see if TENIG’s custodial employees are prepared to match the outsourcing proposals.

Bottom line . . . the school district is faced with financial challenges in the budget. If outsourcing of the custodial services can save the district $950K, should privatization take priority over education and programming cuts? On the other hand, if TENIG is prepared to make a concession and meet the district somewhere in the middle, can we agree that is acceptable? This is only the beginning . . . TENIG is the precursor to the teacher union negotiations; setting the stage for what is to come.

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Reminder: Tonight is the TESD School Board meeting. The location has been changed to Conestoga High School, 7:30 PM. Click here for the School Board agenda.

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