School District Adopts Budget, Hopes to Restore Cuts in Coming Months

The School Reform Commission voted 3-1 Tuesday night to adopt a $2.7 billion budget for the 2011-2012 school year, with the major cuts proposed in April. Commissioner Johnny Irizarry was the lone ‘no’ vote.

Despite the adoption of the budget, which was required by Home Rule Charter guidelines to be voted on by May 31, school district Chief Financial Officer Michael Masch was hopeful that changes will be made.

“Even more than in most other years, many of the critical building blocks are still uncertain. We all recognize in this moment in time, the only thing we can do is adopt an interim budget, and there may be a number of changes in next days and weeks,” Masch said.

One of the uncertainties that may help the school district restore some of the cuts is the decision by City Council whether or not to give money to the school district. The school district had a hearing before council last week to request additional funds from the city.

Another factor in play, that could eventually add money into the district’s budget, is that, according to Masch, the Commonwealth of Pennsylvania has received revenue collections that exceed projections for the first quarter of the year, which could total up to half of a billion dollars. Masch is hopeful that this excess could go to more education funding from the state.

Masch presented a third possibility to the SRC, which is finding financing for the transpasses from SEPTA. The district is reimbursed by the state one year after they pay SEPTA for the transpasses. The district is looking into financing options to bridge the gap between when the money is due to SEPTA and when the reimbursements arrive, and considering making a deal with SEPTA to keep these transportation options for students.

With all of these factors still uncertain at the deadline for passing a balanced budget, however, the budget was adopted with deep cuts still in place.

Commissioner Joseph A. Dworetzky voted ‘yes’ on the budget adoption, but elaborated, “It is an unhappy vote. So many things that people said today I agree with… Certainly I understand the pain, fear and unhappiness that you are feeling. I wish it could be different. We all wish it could be different.”

The meeting packed the auditorium on the second floor of the School District Administration Building. More than 30 parents, district employees and concerned citizens signed up to speak during the public testimony.

Some were angry; some pled for certain programs to remain intact.

“I’m concerned with what seems to be a fundamental lack of oversight and improperly placed priority, when it comes to the funds the district does receive,” said parent Rebecca Payourow. “If the district wants us to lobby for more money, they have to replace full-day kindergarten and transportation. When we hear that $24 million is saved by cutting full-day kindergarten, when we find out the same is being spent on an 18-day summer program, we ask where was the oversight?”

Other parents rallied for the causes of transportation, special education and accelerated schools and alternative education programs.

Superintendent Arlene Ackerman said that if the district does receive more funding, from either state or local sources, that administration has heard loud and clear what the community wants restored.

“The first thing we would restore is full-day kindergarten, second, almost unanimously, was transportation. After that we’ve had requests for some more funds for alternative education, early childhood education, nurses and reducing class sizes back to the sizes we currently have,” Ackerman said.

One change was made from the budget was the addition of individual school budgets, with outlines of discretionary spending from each school’s principal. According to Masch, in many instances, individual schools chose to cut material costs in their discretionary spending, in order to preserve teaching positions.

With this information added to the budget, 411 teaching positions have been restored. The restored positions bring the total number of positions being eliminated in the budget from 3,820 down to 3,409.

As for the undetermined factors that could aid the school district to restore some of its most difficult cuts, Masch said he hopes to pass an amended budget by the end of August, with some cuts restored.

The commission also passed a resolution that would allow them to cancel any contract, including collective bargaining agreements, if necessary negotiations are not made.

A release from the school district shortly after the meeting said of the resolution, ”Over the past several months the District has explained the budget situation to the collective bargaining units in an attempt to inform and also gather feedback and suggestions from these stakeholders.  The District’s budget gap closing plan relies on $75 million in budgetary relief from re-opening the District’s existing collective bargaining agreements.  If the District is not able to realize these savings, then deeper spending cuts will be necessary.  The bargaining discussions are in various stages with each of the unions.”