Uncertainty over state aid troubles school officials
HARRISBURG – Uncertainty over how much state aid lawmakers will devote to education is giving local school officials across the state a headache. The governor has proposed giving all public school districts a 1-percent increase in subsidy, the House has proposed a 2.85- to 4-percent increase and the Senate supported a 13-percent hike.
The state probably won’t agree on a final figure until late June, well after school boards have finalized their budgets and set property tax rates. Some school boards have already set tentative budgets.
As a result, school officials are being forced to guess how much state aid they’ll receive. It’s a big question mark, because state aid accounts for about 38 percent of basic education costs in school districts.
If school officials end up receiving less than they expect, they say they’ll need to reopen their budgets later and look for ways to trim spending. If they receive more, they say they’ll have to readjust the tax rate and send out corrected tax bills, which could be a clerical mess.
“It’s a problem for us,” said Tim Kirby, superintendent of the Council Rock School District in Bucks County. “We have not even passed a preliminary budget yet, in part because of not knowing the revenues. It’s not a pretty picture.”
State legislators are on recess and won’t be back in session until June 3.
Leaders in the House and Senate say the final state budget will include more than a 1-percent increase for the state’s public school districts.
“I think that it’s unrealistic to expect a 13-percent increase,” said Erik Arneson, chief of staff to Senate Majority Leader David Brightbill (R-Lebanon). “At the same time, the General Assembly has made a clear statement that 1 percent is not enough. However much we can do, that’s what were going to do.”
Schools officials are accustomed to knowing how much state aid they’ll receive ahead of time. In recent years, lawmakers often have passed budgets in May or even as early as April. But that was in the good days, when the economy was booming and the state government had a budget surplus.
With the state government facing a revenue shortfall of about $1 billion and legislative leaders looking to avoid a tax increase, next year’s budget will be lean. That means lawmakers will have to make tough spending decisions, and any debate could prolong the budget process. Lawmakers have until June 30, when the current fiscal year ends, to pass a new budget.
“We remain optimistic that it won’t go down to the absolute deadline, but that’s a real possibility this year,” Arneson conceded.
But school officials say they can’t wait. Their budget cycles coincide with the state’s fiscal year, so many school boards may be forced to pass a final budget before the state passes its budget.
“Yes, it certainly is a concern, because until we know what that figure is, we’re just guessing on what that revenue will be,” said Carmichaels Area School District Superintendent Jim Zalar. “Our budget must be done by June 30. We will pass a tentative budget this Thursday. We’re going on the governor’s figure right now, so we’re planning for the worst and hoping for the best.”