Schools face more financial woes
State could cut funding by 20%
Intelligencer Journal
Lancaster New Era
Updated Feb 16, 2011 23:41
By BRIAN WALLACE, Staff Writer
School district officials planning for a tough budget year recently got some bad news.
They were hoping for a share of a $387 million federal stimulus grant awarded to the state this year to help schools minimize staff cuts.
But Gov. Tom Corbett recently directed that the Education Jobs Fund grant be used, instead, to shore up the current state education budget.
He also requested that $364 million in state funds be diverted from the education budget into the general fund to help offset a projected $4 billion deficit.
The funding swap, which must be approved by the Legislature, will not only leave districts without the federal money they had sought, it will create a potential $364 million hole in the education budget next year.
That's in addition to the $654 million gap that will result when other federal stimulus grants used to fund the education budget this year expire.
Unless the cash-strapped state comes up with the money to fill those gaps, school districts could face a shortfall of $1 billion or more in their state basic education subsidies in 2011-12.
That could mean a nearly 20 percent cut in funding, to 2006-2007 levels.
What happens with the budget remains to be seen, but district officials in Lancaster County are taking seriously the threat of a huge decline in a funding source that pumped $164 million into county public schools this year.
Penn Manor superintendent Michael Leichliter said he "absolutely" considers the $1 billion cut a possibility.
"Indications from local legislators have been that there is no money to fill the hole left by the stimulus funds," he said in an e-mail.
Fortunately for Penn Manor, the district budgeted for about $2 million less in state funding in 2011-12 — $10.2 million, compared with $12.1 million this year.
Nonetheless, the district is considering a variety of cuts to its programs and staff as well as an administrative pay freeze to help balance next year's budget.
Other districts are not so fortunate.
Octorara budgeted for $5.5 million in state aid next year — the same amount it received this year, superintendent Thomas Newcome said.
It now faces a $600,000 state funding shortfall.
Lampeter-Strasburg could receive nearly $800,000 less than anticipated, and Pequea Valley might find itself $200,000 short, officials said.
Districts already struggling with weak local revenue streams, declining federal aid and increasing pension, health care and salary costs now face the prospect of having to make more budget cuts.
It is possible that some, if not all, of the lost stimulus education funds will be restored with state money, but school officials aren't counting on it. They will know more after Corbett releases the state's 2011-12 budget March 8.
To help ease the economic burden on schools, the state Legislature is planning to introduce a series of bills designed to free districts of some expensive mandates.
Among them is legislation sponsored by Sen. Mike Folmer, a Lebanon Republican, that would allow schools to furlough teachers for economic reasons.
Currently, the Pennsylvania School Code allows districts to lay off teachers only in response to enrollment declines, school mergers or the elimination of programs.
Layoffs also must be conducted by seniority, with the shortest-tenured teachers furloughed first.
Folmer's bill, which has yet to be introduced, would not eliminate that provision, but it's likely to be amended to allow school districts to determine who is furloughed, regardless of tenure, according to Beth Williams, Folmer's spokeswoman.
Superintendents have said the changes would make it easier to respond to economic conditions without the need to eliminate entire programs.
The state teachers' union opposes the proposal, claiming it would increase class sizes and "politicize" the teacher evaluation process by encouraging administrators to give lower ratings to more senior — and better paid — teachers.
Folmer's bill also would compel districts that furlough teachers to reduce administrative staffs by the same percentage.
The legislation is expected to be introduced next week, Williams said.
It's not clear when the other bills designed to cut red tape, and expenses, for school districts will be introduced.
bwallace@lnpnews.com
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