School Districts Facing Growing Fiscal Crisis

As school winds down in early June in Pennsylvania, school business officials and business managers already are looking ahead to September, working on 2010-11 school year budgets. And this year, perhaps more than ever before, school districts are under financial strain that could result in hundreds of teacher layoffs, or program and curriculum cuts in order to make ends meet.

The Pennsylvania School Funding Campaign - supported by PA Partnerships for Children - released a new report today highlighting dramatic drops in local revenue, potential staff reductions and program cuts for school districts statewide. "Student Achievement Gains at Risk: Schools Cutting Staff and Programs as Revenues Decline," is the result of a recent survey of 52 percent of school districts across the Commonwealth coordinated by the Pennsylvania Association of School Business Officials (PASBO) and the Pennsylvania Association of School Administrators (PASA).

The survey findings indicate significant shortfalls in local school tax revenues and interest earnings of $343 million this year including a collective drop in Earned Income Tax revenue by almost $50 million, a $75 million loss in Realty Transfer Taxes and a decline of interest earnings of $220 million.

The bottom line is this: school districts collectively are short $343 million in revenue - local dollars lost due to a slow economy, lagging home sales and interest earnings from a financial market that has yet to fully rebound. To compensate, school districts are tapping into fund reserves (that may be needed to handle the looming pension crisis next year); reducing instructional staff (teachers and classroom aides) that will result in larger class sizes; cutting expenses for resources such as tutoring and textbooks; and trimming educational programs such as music and art classes, foreign language, computer instruction and physical education.

In fact, two-thirds of school districts reported they will cut instructional staff and one-third will cut instructional programs in 2010-11.

But we can help avert this crisis by urging the General Assembly to pass the governor's proposed $354.8 million increase for basic education. The answer will not be found in laying off teachers, getting rid of music and art and eliminating bus routes or field trips.

We must hold steady. We must not lose the gains made by our students - enhanced academic achievement by students that is the direct result of the state's commitment to increased financial support to school districts.

Joan L. Benso, president and CEO, PA Partnerships for Children