by Christin Brown | October 28, 2015 | News Releases
Harrisburg – October 28, 2015 – At the request of state Sen. Vince Hughes (D-Phila.), the Senate Democratic Policy Committee today held a hearing on the devastating impact that the state’s 120-day budget impasse is having on schools across the state.
“While many of the budget dispute points remain unresolved, what is clear is that the consequences of this impasse are far-reaching,” said Sen. Lisa Boscola (D-Northampton), who chairs the committee. “This hearing gives lawmakers a sense of how schools are handling the funding shortfall, and what problems they’ll face if this stalemate continues to drag on.”
Hughes added, “A growing number of schools have been cornered into borrowing money and taking out credit lines just to keep their doors open. Hopefully, this hearing’s focus on this worsening statewide financial crisis will encourage greater urgency, cooperation and compromise in the ongoing budget negotiations.”
During the hearing, state Auditor General Eugene DePasquale testified that at least 27 school districts have taken out loans totaling more than $431 million. He projected that interest payments will total $30 million if the stalemate reaches mid-November.
Those who testified decried how the impasse has harmed students, depleted reserves and how taxpayers will be needlessly saddled with paying the interest on the growing number of loans and credit lines that schools are obtaining to keep their doors open.
Erie Public Schools Superintendent Jay Badams lamented that his district will need to borrow $30 million just to get through January.
“That’s $114,000 in wasted interest money that could have been used for so many badly needed educational expenses,” Badams said.
Dr. Joseph Roy, who serves as superintendent of the Bethlehem Area School District in Northampton County, added that “choices at the state level continue to hammer school districts.” He said the diversion of funds to charter and cyber schools and a “punitive” approach to public education has blown up school expenditures.
Dr. Rula Skezas, who serves as superintendent of the McKeesport Area School District in Allegheny County, noted that even if the district receives its proposed funding it would still fall short of what it received during the 2011 school year. She said McKeesport has taken out a $5 million line of credit to make it to December. She said the district has already eliminated 110 staff positions to try and make ends meet.
Hughes, who serves as Democratic chair of the Appropriations Committee, said public, charter and private schools are already reeling from years of being underfunded. He noted that the Philadelphia School District has already borrowed $275 million during the impasse. Fran Burns, who serves as chief operating officer for the School District of Philadelphia, testified that the district has struggled to contend with a “structural deficit.”
Lamenting the impact on local working families who fund schools through property taxes, Boscola pointed toward an educational survey conducted earlier this year showing that nearly 75 percent of districts were planning to impose property tax hikes, 30 percent were planning on making additional program cuts, and 41 percent were making more staff cuts. She said the state has withheld approximately $3 billion in school funds since the budget impasse began in July.
Joining Boscola and Hughes at the Capitol committee hearing were Senators John Blake (D-Lackawanna), Jim Brewster (D-Allegheny), Andrew Dinniman (D-Montgomery), Christine Tartaglione (D-Phila.) and Sean Wiley (D-Erie),
Those testifying included:
- The Honorable Eugene DePasquale
Pennsylvania Auditor General
- Fran Burns
Chief Operating Officer, School District of Philadelphia
- Joseph Gorham
Superintendent of Schools, Carbondale Area School District
- Dr. Joseph Roy
Superintendent of Schools, Bethlehem Area School District
- Dr. Jay D. Badams
Superintendent, Erie Public Schools
- Dr. Rula S. Skezas
Superintendent, McKeesport Area School District
- Marjorie Neff
Chair, School Reform Commission
- Anthony Pirrello
CEO, Montessori Regional Charter School of Erie, and Vice President of Pennsylvania Coalition of Public Charter Schools
- Matt Przywara
Member, PASBO
Chief Financial and Operations Officer, School District of Lancaster
- Bill LaCoff
President, Pennsylvania School Boards Association
- Susan Gobreski
Education Voters of Pennsylvania
- Dr. Pearl English
School Nurse, School District of Philadelphia
# # #
by Christin Brown | August 4, 2015 | News Releases
Erie, Aug. 4, 2015 – Today, the Senate Labor and Industry Committee held a public hearing to examine recent changes to unemployment compensation eligibility and potential negative impacts to seasonal workers. The meeting was convened at the request of Sen. Sean Wiley (D-49) who has long-advocated a forum for legislators to hear directly from the greater Erie community.
Under Act 60 of 2012, the General Assembly took measures to reduce a $4 billion debt to the federal government and address the long-term solvency of the unemployment compensation system. One significant adjustment modified how eligibility is calculated resulting in a disqualification for workers who earn 50.5 percent or more of their annual income in one quarter, where the previous threshold was 63 percent.
“I understand the intent of Act 60, but unfortunately, workers in the greater Erie community who are at the mercy of the weather to do their jobs are disproportionately affected,” said Wiley.
Committee Chair Sen. Lisa Baker (R-Luzerne) offered, “For some time now, reports have been coming in indicating that the latest round of reforms to the unemployment compensation law are adversely affecting seasonal workers. “The hearing offered some valuable information to help us determine the extent of the problem and the practicality and cost of potential remedies.”
“The unintended consequences of the changes made through Act 60, the disproportionate number of seasonal workers, and those who respond to emergencies – like Hurricane Sandy – require us to revisit these changes,” said Democratic Committee Chair Sen. Christine M. Tartaglione (D-Philadelphia). “Unemployment benefits are a vital financial safety net for men and women who have lost their jobs. Making sure they don’t suffer further is why we have been working hard to rectify this issue.”
Wiley also offered, “I commend Sen. Baker for her leadership on this matter and willingness to hear from those in this community who are impacted. I hope that the testimony provided before the committee here today will be helpful in developing a potential remedy.”
Those providing testimony included representatives from the Pennsylvania Chamber of Business and Industry, National Federation of Independent Business, the Pennsylvania State Building and Construction Trades Council, Laborers’ International Union of North America, the American Council of Engineering Companies, Associated Pennsylvania Constructors, as well as local businesses and employees.
###
by Christin Brown | November 21, 2013 | News Releases
Harrisburg – November 20, 2013 – The transportation funding plan that passed the Senate tonight was the ‘flawed product of a flawed process,” state Sen. Christine M. Tartaglione said today.
“Changes to Pennsylvania’s prevailing wage laws have been proposed and debated for years and have failed to reach a majority or even a consensus,” she said. “Leveraging this unpopular idea against the safety of Pennsylvania drivers, who make millions of trips across structurally deficient bridges every day, is pure politics and bad public policy.”
After Senate Republican leaders rebuffed an attempt to amend the House transportation plan to remove the controversial wage language, Tartaglione voted for the critical transportation improvement plan on final passage.
“There is no time to go back to the start on a transportation plan,” she said. “I believe the safety of drivers and the soundness of our economy is at risk if we don’t start rebuilding our long-neglected infrastructure.”
The $2.4 billion package increases spending to $1.7 billion by the fifth year for highway and bridge projects. Another nearly $500 million would be targeted for mass transit and $144 million for multi-modal projects.
It is expected to create more than 60,000 jobs and create an improved infrastructure that will attract billions in private investment.
The new transportation investment is largely paid for by the removal of the cap on the Oil Company Franchise tax over a three-year period to generate $1.8 billion by FY 2017-18. Fee and fine increases included in the bill would raise hundreds of millions more.
Tartaglione noted that she voted in favor of a similar funding plan, Senate Bill 1, that passed the Senate on an overwhelming, bipartisan vote earlier this year without the prevailing wage changes.
“It’s is good news that help is coming for commuters and public transit riders,” Tartaglione said. “But the process that produced that funding is a sign that difficult decisions will not be made in the future without partisan gamesmanship.”
###
