Should Mergers Be a possibility

I had the opportunity today to speak to a reporter from the New Castle News, Rachel Sapienza. The topic was school mergers. A few facts will set the table. Eighty five (85) percent of all school districts in the state of Pennsylvania will raise their taxes for the 2016-2017 school year. Forty five (45) percent of all school districts across the state will have less staff in 2016-2017. The bottom line is the state is starving districts into submission. We have bills we cannot pay.

The state should look to willing partnerships. Long before mergers occur, you will see shared services (occupational therapy, physical therapy, speech and language, psychological services, administrative services, etc.).

Mergers do not necessarily mean closing buildings. Mergers do mean a more efficient use of staff. For example, if a merged districts want to review or plan for class size, they must do simple math. Take the number of students you have divided by the class size desired (22-25), and the number of classroom teachers needed will come to light. Do you have enough staff? Do you have too few? Do you have enough special teachers (gym, art, music, computer, etc.)? Do you have to few? Such an analysis will reveal staff usage and any possible savings.

Mergers also mean an end to duplicative service. One comprehensive plan is created. One special education plan is needed. One audit will be done. Districts will also save on administrative costs.

The state needs to incentivize this conversation. They need to provide money for a feasibility study and transition cost. Laurel is a strong district. However, if we have a willing partner, we would be foolish not to listen.

Governor Wolf Offers No Timetable for Budget

Governor Wolf is not optimistic that a budget will be passed prior to June 30th. Schools have followed the law, why can't the state?

Both PASA (superintendents' organization) and PASBO (business managers' organization) have indicated that 85% (YES ALMOST ALL) school districts plan to increase property taxes. About half of all school districts intend to cut or scale back academic programs. Nearly half plan on job cuts and thereby increasing class size.

The pension assessment, special education costs, and charter school costs are bankrupting local schools. Because of state action, local schools are left with expenses they can't pay.

The growing disease within school finance is deficit spending and balancing budgets through fund balance. This recipe for disaster will necessitate a bailout within the next 5 years.

Let's have a common sense approach to budgeting. We cannot tax our way to fiscal stability nor can we cut all expenses. We need to have a balance. Where can the state raise revenues and cut costs. They need to do both!

A Message for the Graduating Class of 2016

The 2015-2016 school year has been one of extreme highs and lows.

At the Lawrence County Career and Technical Center we have seen unprecedented growth. Our school has swelled to over 440 students for the first time in more than a decade. In the era of the Keystone exam no class has ever done academically better. Our NOCTI scores should be over 90% proficient for the 2nd consecutive year. We had a Skills USA state champion for the first time in a generation.

We were a school where over 67% of the students NEVER received a behavioral referral. They were never late to school or class, never caused a classroom disruption. They did what they were supposed to do. We were a school where 80% of the students received 3 referrals or less. Maybe they were late to class or school too many times. We were a school that sent 80+ student to a hockey game as a behavioral incentive. We were a school that sent 80+ students ice skating as a behavioral incentive. We were a school that sent 80+ students to a baseball game as a behavioral incentive. We had over 200 students who were office discipline referral free participate in a picnic lunch. We gave away 34 gift cards and an I-pad.

This was also a year of behavioral lows. It was 180 days of "take your hat off." Three seniors had 20 or more office discipline referrals. Whether you were chronically disobedient or occasionally disruptive, for the most part it was choice. You were deliberately defiant. The school was often mired in student conflict related to inappropriate posts on social media. Understanding one another was not a priority. We became less tolerant of those who didn't look like us or act like us. We took a step backward when it came to respect for the decency of humanity. Self was far more important than selfless.

With such a dichotomy of characteristics that define the legacy of this class, I stand before you nervous. These graduates are at a crossroads in their lives. Some are the first to graduate high school in their family. Some are the first to advance to any form of post-secondary education. Many have established full-time employment or are going to the military. But some sit here and their long term plans are what they intend to do this weekend.

In order to calm my nerves and perhaps provide some last minute guidance I refer to the words of Bill Keane. "Yesterday is history, tomorrow is a mystery, today is a gift of God, which is why we call it the present.” Make the most of your TODAY!!! You are entitled to nothing. There is no extra talent needed to work hard and smart. Dot the I's and cross the T's of life.

You chose as your class motto: Chase your dreams but always know the road that will lead you home again.” These words my Tim McGraw encourage us to dream and we should. But we need a plan. A dream without a plan will never be an accomplishment.

Your class song was My Wish from Rascal Flats. My wish for you is to discover your potential. Be a contributor to society. Everywhere you go leave it better than you found it. Dare to be the best child, friend, worker you can be. Dare to expect more from yourself and less from others.

In summation I leave you with 3 simple rules that will guide you in life:

•     Go where you are supposed to go!
•     Be there on time!
•     And when your there, use your God-given abilities to the very best you can.

Congratulations class of 2016!

A Conversation with Representative Jaret Gibbons

Last night (May 31), I had the opportunity to attend a town hall meeting with State Representative Jaret Gibbons. The topic that dominated the two hours was, of course, the state budget.

The primary concern in the state budget is addressing the $50 billion plus deficit in the state pension system.  This problem was caused by a Republican Governor (Ridge) and the Democrats in the state assembly. In exchange for an increased multiplier to pension benefits (from 2% per year for every year of service to 2.5%), the governor got Act 48. This law demands that teachers continue to get professional development throughout their career.

According to Representative Gibbons 93% of the original $1 Billion dollars has been restored to public education. In fact, the Laurel School District is receiving about an $83,000.00 increase in basic funding as compared to 2015-2016. The problem is that costs are rising faster than revenues.

The overwhelming concern of any public school budget is the pension (PSERS) obligations. Currently school districts across Pennsylvania contribute over 30% of an employee's salary to a pension. The assessed rate of contribution has sky rocketed over the last 5-7 years and will continue to be over 25% through the year 2027. School districts will be looking for ways to financially survive over the next decade.

The Laurel School District has had to dip into its fund balance in order to cover budget short falls for the last two fiscal years (2014-2015, 2015-2016). The next fiscal year, 2016-2017, will mark the third consecutive year of deficit spending. The school district projects a shortfall of $934,000.00 despite cutting 8 positions from the prior year. Dipping into fund balances is a recipe for disaster. Fund balances are non-renewable resources. The Laurel fund balance has decreased by millions of dollars over the last three budget cycles.

The Laurel School Board would have to exceed the index, exceed the exemption for special education and raise taxes 4 mills just to cover pension. Therefore it is impossible for the district to cover it's cost.

The conclusion is as follows:

• district revenues no longer meet district expenditures
• district expenditures (salary, pension, medical insurance, etc.) will continue to rise.
• district fund balances continue to shrink
• If the state does not change the way schools are funded or the pension obligations they owe, the Laurel School District has about 3-5 years before it financially cannot exist.