Published: August 31, 2009 08:50 am      

Legislative stalemate gives schools an unwanted budget lesson

School districts may be the next casualty of Pennsylvania’s budget deadlock, with reimbursements from the state cut off.

Conemaugh Valley School District depends on state subsidies for 73 percent of its $12 million budget. Superintendent David Lehman Jr. has enacted cuts of about $15,000 in purchase orders. But that’s a drop in the bucket as he faces payroll for what some say could be another month or two.

“We’re frugal. We’ve cut paper. We’ve cut staplers. We don’t want to cut staff,” said Lehman.

Lehman predicts his district can last through September before it dips into a $2 million tax anticipation loan he requested as his first order of business in July.

Northern Cambria School District operates with a budget of more than 80 percent state funds. The district should get through September, but it’s looking for $2 million in financing, Superintendent Tom Estep said.

“We’re seeking it now, then we’ll see where we are in a month from now,” he said.

As the bulk of the region’s students head back to the classroom today, district officials in Cambria and Somerset counties admit growing concern about the inability of legislators to adopt a state budget.

“We need them to settle this. It’s sad. These are adults who have been doing this for years,” said Central Cambria Superintendent Vincent DiLeo.

DiLeo has stopped nonessentials such as field trips and conferences. He hopes to stretch the district’s reserves to October.

Greater Johnstown School District spends about a half million dollars in payroll every two weeks. Superintendent Barbara Parkins calculates she has enough money to pay her staff twice.

The impact of the budget impasse is being felt in a variety of ways, she said.

For example, the state is not paying money designated to cover tuition costs for district students participating in the precollege early enrollment program.

“Right now, it’s an immediate impact on about two dozen students,” Parkins said.

In Blacklick Valley School District, officials are researching penalty rates for late payments on unpaid invoices, said 27-year veteran Superintendent Don Thomas.

“We’ll be fine for the short term, but we’re not doing any new spending at all. We’re scaling back to the bare essentials,” Thomas said.

The same is true in Portage Area School District, where Superintendent Richard Bernazzoli wouldn’t speculate on how long his reserves will hold out.

State leaders say they share the concerns, but their constituents oppose any additional taxes.

“The people have spoken loud and clear: They want no tax increase,” said state Rep. Gary Haluska, D-Patton.

In Haluska’s home school district, Cambria Heights Superintendent Michael Strasser said he can make payroll through the end of September. His business manager is looking into a loan.

“We’re prioritizing bills, seeing which ones we can hold,” Strasser said.

Penn Cambria School District also is looking for potential interim funding to help make up some of the $9 million it receives from the state for its $20 million budget, Superintendent Mary Beth Whited said.

The district delayed the start of the prekindergarten program and furloughed an aide.

“We’ve seen the results in our students, and it is very painful,” to put the prekindergarten on hold, she said.

Reserves in Forest Hills will take the district through the end of October, Superintendent Don Bailey said.

A handful of districts

– including Ferndale, Westmont Hilltop, Richland and Somerset – are a little better off than some, but they say a budget must be put in place soon.

Richland, which gets $10 million of its $17 million budget from local taxpayers, has carry-through funds for a couple of months, Superintendent Tom Fleming said.

Richland cut a bus route and is not replacing five employees, he said.

In Ferndale, a 3.5-mill tax increase approved earlier this year will help bump up local property tax revenues, said Superintendent Carole Kakabar.

“If things don’t pan out by mid- to late October, we’ll be looking around for some money,” she said.

Westmont Hilltop Superintendent Susan Anderson said the district has some reserves.

“I just join educators across the state to urge a resolution,” she said. “People have to roll up their sleeves and come to the table everyday to seek a resolution.”

All districts have the option of short-term loans, but those come with interest costs that many districts say they should not be forced to pay.

State Sen. John Wozniak, D-Johnstown, did not indicate that interest costs would be reimbursed unless the budget stalemate continues for several more months.

“If this would run into January maybe we’d see something,” he said. “But I think this won’t go further than the month of September.”

But even after a budget figure and revenue sources are agreed upon, it will be a couple of weeks before it is printed and approved, Haluska said.

In the Somerset Area School District, which is in better shape than most, Superintendent David Pastrick said he is concerned about what the final state budget will do to education.

“We don’t just want any budget. We want a budget that supports the schools,” Pastrick said.

State Rep. Frank Burns,

D-East Taylor Township, said he is confident leaders will get their priorities in order.

“It will take as long as it takes to do it right,” he said.