Schools reckon gains, losses in Pa. budget

They had to guess how much they’d get; some guessed high

Intelligencer Journal
Lancaster New Era

Oct 14, 2009 08:46 EST

By BRIAN WALLACE, Staff Writer

School district officials had to approve their 2009-10 budgets 3½ months ago, but they found out only this week how much money the state will kick in to help them pay their bills.

For some districts, the news is good.

They budgeted for less in state education subsidies than they'll receive under Pennsylvania's $27.8 billion spending plan.

Other districts were counting on more money from the state than they'll get.

But the funding shortfalls are not big enough to force the districts to reopen budgets, lay off workers or cut programs — yet.

Officials at several districts said they'll dip into reserves, defer purchases and/or cut spending to make ends meet.

The state spending plan was approved Friday, 101 days after the deadline, after a standoff between Gov. Ed Rendell and the Legislature over spending priorities.

Education funding was spared the major cuts imposed on other programs as legislators and the governor sought to offset a projected $3 billion shortfall in state revenue.

The Legislature approved an increase of $300 million, or about 5.7 percent, in education funding, thanks to an influx of $654 million in federal economic stimulus funds.

Of those federal funds, $354 million was used to plug a gap created when lawmakers diverted state dollars from education to other programs.

The remaining $300 million in stimulus funds was used to increase subsidies and grants for schools.

The education budget retains the funding formula implemented last year based on a 2007 "costing-out" study that found major gaps in what schools should be spending and what they actually spend on education.

For Lancaster County's 17 public school districts, the state will increase basic education subsidies an average of 5.17 percent. The state will pump an additional $7.884 million into county schools, boosting total subsidies to just over $157 million.

The increases range from 2.1 percent for Pequea Valley to 8.61 percent for Columbia.

Offsetting those gains is a freeze on special-education funding, which remains at the 2008-09 county total of $36.7 million.

Districts also won't see any funding increases for the Pre-K Counts pre-kindergarten or Head Start programs. Also frozen at 2008-09 levels are Accountability Block Grants, which pay for all-day kindergarten, teacher training, tutoring and other programs.

In addition, the state cut $150 million elsewhere in the education budget, eliminating Classrooms for the Future and the Teen Pregnancy and Parenthood and Safe and Alternative Schools programs.

Despite the cuts, the boost in basic education subsidies — the largest source of state aid — drew cheers from local school officials.

"We are thrilled that the Legislature decided to come up with this plan," said Laura Cowburn, assistant superintendent for finance at Columbia Borough School District.

Her district budgeted for about $200,000 to $300,000 less in basic education subsidies than it will receive, Cowburn said.

That funding cushion will allow Columbia to hire a high school library assistant, retain a sixth-grade teacher added this school year and move ahead with technology upgrades and curriculum revisions, she said.

But Cowburn, like other local school officials, expressed concerns about lawmakers using federal funds that expire in 2010-11 to prop up the state's education budget.

"We are concerned about what happens when the federal funds aren't funneling through," she said. "It may be a one-year stopgap budget."

Hempfield superintendent Brenda Becker shared those concerns.

"It sounds like we will be in the same situation next year since the government has only looked at this year's budget and has no long-term solution," she said in an e-mail.

Becker had not seen the state budget numbers, she said, and could not comment on whether Hempfield will get more or less state funding than expected.

Manheim Township will get about $300,000 more in state funds than it budgeted for, spokeswoman Marcie Brody said.

Eastern Lancaster County School District will get about $17,000 more than anticipated, Keith Ramsey, chief of finance and operations, said.

Lampeter-Strasburg also ended up with a cushion of about $15,000.

"I think, in general, we're pretty satisfied," L-S business manager Terry Sweigart said. "Especially given what I'm hearing about funding cuts to other state departments."

Several districts overestimated how much money they'll receive from the state.

Conestoga Valley will get about $375,000 less than anticipated, superintendent Gerry Huesken said in an e-mail.

The district won't have to cut staff or programs but may have to defer some building maintenance and delay purchasing books, software and other materials, he said.

Pequea Valley will get about $169,000 less than it budgeted for, business administrator John Bowden said.

The district will make up the difference by dipping into its $2 million budget reserve or tapping a portion of the $325,000 it set aside to prepare for increased retirement contributions in 2012, Bowden said.

"I don't anticipate any major cuts at this point in time," he said.

It's "too early to tell" how Donegal will fill an estimated $253,000 gap in state funding in its budget, business manager Amy Swartz said.

The district is getting a basic education subsidy of about $6.8 million.

Swartz said she must meet with district administrators and school board members to determine what funding cuts, if any, Donegal will make.

"I'm certainly hoping we won't have to cut programs," she said.

While the $253,000 gap is significant, it represents only about 0.7 percent of Donegal's $38.15 million budget.

bwallace@lnpnews.com