Dec 8, 2003 By Thomas Gentzel 4 min read

Since July 2, school districts have been operating without any state funding because the governor and the General Assembly cannot agree on how much assistance to provide and what form it should take. The heart of the controversy is the disparity of opinion over Gov. Rendell’s education initiatives, the source of revenue that will be used to pay for the new programs and their cost. In the meantime, the state has missed making two consecutive installments of basic education subsidy to the commonwealth’s school districts. The first missed payment was in August and the second in October, totaling more than $1 billion in subsidies owed to schools. The third payment is due in late December. It is a gross understatement to say that school officials are growing frustrated as they see their cash flow stretched to the limit. They are doing everything in their power to maintain operations and keep school doors open. That means accelerating the use of their local tax revenues to make up for missing state subsidies and using reserve funds to pay the bills. Those districts that are fortunate enough to have some funds in the bank are watching them being eaten up as this impasse drags on.

The results of a survey recently conducted by the Pennsylvania School Boards Association estimate the cost of the funding deadlock to school districts to be well in excess of $1 million each week, including lost interest income earnings, as a result from districts spending rather than investing local revenues, and additional interest and other associated borrowing expenses.

Still, many state policy makers do not seem to understand the impact this stalemate is having at the local level. Or maybe they are just willing to continue this standoff because no one seems willing to compromise. The General Assembly adjourned for the summer and, more recently, for the Election Day and Veterans Day holidays without taking action. The governor continues to threaten to veto any legislation that does not include what he believes to be appropriate funding for his education plan, which includes options for pre-kindergarten, full-day kindergarten, smaller class sizes and tutoring, among other things.

It has been suggested by some in Harrisburg that as long as there is no public outcry, the issue is not important enough to force a resolution. Now is the time for such a public outcry, to be sounded loud and clear from every corner of the commonwealth. This stalemate over state education funding eventually will affect nearly every taxpayer. It does not matter whether or not you have children in school right now or if you are young, old, rich or poor. What does matter is that your school district is depleting its existing funds day by day, and that could translate into higher local taxes next year.

The longer this impasse continues, the greater the likelihood that local taxpayers will have to shoulder the expenses that have resulted from the current state of affairs. Many school districts that are now spending their reserves typically have used them to help hold down property tax rates. Without that cushion, it is likely that property taxes will increase in the future when it needs money for large projects, such as building construction or renovations, or purchasing new technology for students. The interest and related expenses that accompany short-term loans were not anticipated in June when districts adopted their budgets, yet they must be repaid. State government should be expected to reimburse school districts for these added costs but, even if it does, the taxpayers will pay for the intransigence of state leaders.

Even worse than the prospect of higher taxes is the possibility that the lack of state funding could cause districts to begin curtailing or terminating needed services or activities for students. Despite the many challenges they face, school boards and superintendents have not closed the doors of any school. They are engaged daily in a heroic effort to maintain operations, meet their payrolls and pay bills. However, they need to support of parents, the business community, religious and civic leaders and others whose voices are respected and must now be heard. What can you do? Call or write your state senator and state representative and Gov. Rendell, tell them enough is enough. It is time to end this senseless stalemate and approve school funding now.

There is irony in all this. Pennsylvania now is the only state in the nation that still has not finalized its education spending for 2003-04. If our leaders wait much longer, we will be debating the next budget before this one is resolved. The education of children is our highest priority, but you would never know it by watching the wrangling now going on in Harrisburg.

Thomas J. Gentzel is the executive director of the Pennsylvania School Boards Association.