Unfunded and underfunded mandates continue to hinder school district budgets across Pennsylvania, especially in these difficult economic times.
PSBA has a new initiative to help legislators consider proposals that reduce the cost of a number of unfunded mandates and put limited education dollars back where they belong – in the classroom. FREE, Focusing Resources on Educational Expenses, will introduce 20 legislative proposals targeted at these mandates.
For years, PSBA has been championing on its members’ behalf to bring an end to unfunded and underfunded mandates. Over the years, there have been positive developments on this front. The mandate waiver program found in Act 16 of 2000, the creation of a School Construction Working Group and a Task Force on School Cost Reduction by the Rendell administration are just a few. The FREE initiative will include the recommendations of those two groups that have not yet been enacted, as well as other recommendations from our members about what will have the greatest impact on school district spending.
If state policymakers are serious about helping school districts reduce costs, they can begin by instituting a full and continual review of state mandates. Lawmakers also must agree to fund the mandates deemed essential or at least bring them up to date, while permitting districts some leeway to discontinue unfunded or outdated programs. Such action by the legislature would ensure that available dollars for school districts are spent in those areas that the legislature and governor believe to be in the best interest of students and taxpayers. The following is an overview of the major legislative pieces of the FREE initiative.
- School personnel
On average, 60%-65% of school budgets go toward personnel costs. It is money well spent because experienced staff is key to student achievement. However, many legislative initiatives in the area of school personnel can save schools millions of dollars collectively.
- Pension reform – By changing our school employee pension system from a defined benefit system to a hybrid defined benefit-defined contribution system, we can begin the process of saving taxpayers and school districts millions of dollars in benefit costs, ensuring that the system will not be a burden on our children and our grandchildren.
>> see also Pension Reform
- Economic furloughs – Every other public and private sector employer except for school districts has the prerogative to make adjustments to its workforce when hard economic times hit. Districts cannot furlough professional staff for economic reasons; only when the district experiences decreasing enrollment or the board decides to discontinue a specific educational program. School districts, like other employers, should have the ability and flexibility to make changes to the personnel complement when such changes are necessary.
- School health issues – School districts must have at least one school nurse for every 1,500 students; however, this issue is complicated by the fact that the only individuals who can serve as school nurses are those who take an additional course of certification at one of the state’s colleges or universities. This limitation makes it difficult for many districts, especially those serving rural areas, to find qualified candidates for school nurse openings. PSBA believes that a registered nurse, with proper in-service training, should be able to fill this position. The number of registered nurses in the state greatly exceeds the number of school nurses who attain this certification, so every school district would have an easier time of filling nursing positions.
- Employee benefits – Although school districts are required to bargain with representatives of school employee unions over issues like salary and
benefits, the School Code contains several provisions that mandate a minimum level of benefit for employees, such as sick leave, employment considerations and sabbatical leaves. PSBA believes that these provisions should be deleted and that school boards and employee unions should be able to discuss these matters and resolve them in the best interest of the school district, not according to a state mandate.
School construction
School construction is one of the most costly projects any school entity can undertake, yet it is vital for creating environments where learning can flourish. PSBA is proposing a number of legislative changes to reduce the unfunded mandates currently connected with school construction.
- Prevailing wage – Prevailing wage continues to be one of the most costly mandates on school construction in Pennsylvania. A recent survey done by the Eastern Pennsylvania Chapter of the Associated Builders and Contractors shows that in some counties, the prevailing wage is double that of the occupational wage, and in many others, the difference exceeds 50%. Given the fact that the federal stimulus bill allows funds to be used for school facilities, PSBA believes that the prevailing wage mandate should be suspended for the next two years to achieve the maximum use of those dollars and to give districts the opportunity to evaluate the effect of this mandate on construction projects.
- Multiple prime contracts – The Separations Act of 1913 requires school districts and other public entities to hire multiple prime contractors for areas of construction such as electric, HVAC and plumbing rather than allowing them to hire one general contractor and subcontractors to perform the necessary work on school construction. PSBA believes that this mandate should be repealed and that school districts should have a choice on whether or not to utilize it based on local interests as decided by individual school boards.
- PlanCon – The Department of Education’s Planning and Construction workbook, better known as PlanCon, has been widely criticized by architects, school boards and others involved in school construction for its inflexibility. The School Construction Work Group formed by Gov. Rendell in 2004 made several recommendations to improve the process. These recommendations include automating PlanCon submissions and reducing PlanCon data requirements. Other rules under PlanCon that prohibit state reimbursement for certain projects based on cost and on the number of years since a district last undertook a reimbursable school construction project need to be examined as well. While several recommendations have been made over the years about how to improve the process, there has been little input from the regulated community into the process since it is neither statute nor regulation. PSBA believes that a serious discussion involving the General Assembly, including legislative hearings, needs to take place to ensure that these changes are implemented.
School funding
In these economic times, PSBA welcomes the governor’s proposed 5.7% increase in basic education spending for FY 2009-10. The governor and legislature can direct more resources to public education by addressing the following:
- Special education – The rising costs of special education have been cited most frequently by school districts as a major reason for continuing property tax increases. Unfortunately, the proposed 2009-10 state budget level funds this line item. The level funding of the special education line item,
coupled with a small increase in the current year, means that the burden of educating students with exceptionalities is falling more and more on the local taxpayer, despite the rash of mandates coming from the federal and state governments on the issue.
- Cyberschool funding – PSBA believes that school districts are paying too much to cyber-charter schools to educate students. Each school district pays cyberschools a different amount per resident student based on its budgeted costs, rather than on the cyberschool’s necessary expenses. PSBA believes that legislation is needed to recalculate the costs of cyberschool students to school districts and to ensure accountability of those institutions in the same manner as local school districts are accountable.
- Impact fees – New residential construction not only affects community infrastructure, it also can affect the local school through the addition of more students and an accompanying demand for education services. PSBA believes that school districts should have an opportunity to levy impact fees on new development that increases school district costs.
- Recertification of certain tax exempt property – PSBA believes that institutions that are granted tax exemptions based on their charitable nature should have to recertify their status every five years to ensure that the tax burden is not falling inequitably on other property owners.
- Reimbursement for state mandated programs – PSBA seeks state reimbursement to school districts for state mandated programs. Act 319 of 1974 allows owners of farmland and forestland to apply for favorable assesment so that the land is assessed at its use as farmland and forestland rather than at its normal market value. Act 92 of 1998 allows for economic development projects on certain blighted property under certain conditions, one of which is the complete abatement of taxes by school districts. In both cases, school districts lose local revenue that must be made up by other property owners.
School operations
Schools spend a great deal of money on daily operations that don’t directly relate to classroom instruction. Addressing some of these items can redirect money currently going to these mandates and direct them back into the classrooms where student achievement can be positively influenced.
- Bid limits – Currently, school districts must solicit bids from at least three qualified and responsible contractors for all contracts or purchases of supplies that exceed $4,000, a number that has not been changed in decades. PSBA believes that the dollar threshold should be increased and that an escalator clause, providing for annual increases, be included.
- Nonpublic transportation – School districts are required to transport students to any nonpublic or charter school located within 10 miles of its borders. This mandate requires districts to purchase or contract for additional vehicles, increases the number of miles that district vehicles must drive and causes districts to transport students distances well in excess of the local public school. PSBA believes that this mandate should be fully funded by the state, especially given the increased costs of fuel. In addition, a commission should be formed to more closely look at the demands this mandate places on school districts and to make recommendations on what should be done to make this mandate less costly to taxpayers and districts.
- Extend and expand mandate waiver program – Act 16 of 2000 contains provisions that allow school districts to apply for waivers of several mandates in the School Code, in regulation or standards of the secretary. This provision is due to expire in 2010 unless reauthorized by the legislature. PSBA believes this program has been a valuable asset for districts in cutting fiscal and administrative mandates and advocates for its continuation.
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