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Testimony-Task Force on School Cost Reduction, East Stroudsburg

February 2007

On behalf of the East Stroudsburg Area School District we want to thank you for allowing us to provide testimony today. Superintendent, Dr. Rachael Heath, and Board Member, Mr. Christopher Baj will be testifying for the East Stroudsburg Area School District today. Business Manager, Ms. Marie Guidry, is also present to provide any additional financial information. As we begin our testimony, it is extremely important that we provide you with a brief description of our unique situation.

As you probably are aware, the East Stroudsburg Area School District is located in northeastern Monroe County and southern Pike County. Between the 1990 and 2000 censuses, Monroe County's population grew 44.9% to 138,687 residents and Pike County grew 65.6% to 46,302 residents. Monroe and Pike counties are currently the fastest growing counties in the Commonwealth. Much of this growth can be attributed to former residents of New York and New Jersey relocating to the Pocono Mountains seeking a more economical and safer life for their families. The New York Times has called Pike and Monroe Counties "New York's fastest-growing suburbs." Based on information obtained from our six municipalities, within the next 10 years, 16,035 new housing units are scheduled for construction, including new homes and apartments. (Figure 1) For example, the Highland Park Development in Lehman Township, Pike County, is planning to begin constructing a total of 5,400 new homes starting within the next 18 months. This development will have a dramatic impact of our district.

In 1992, the East Stroudsburg Area School District's student enrollment stood at 4,668. Currently, the total student enrollment is 8, 246 (an increase of nearly 77%). Of the ten buildings in the district, five of them are over student capacity based on PDE standards. Two pods (pre-engineered steel buildings) have been added at two locations and 46 relocatable classrooms have been placed throughout the district to accommodate student growth. (Figure 2) Also, due to the rapid growth, the school district is renovating and expanding two of its six elementary schools; continuing the renovation and expansion of one of the two high schools; preparing to construct a new elementary school; and looking at beginning the process of expanding an intermediate and high school (Figure 3 and Figure 4) . Subsequently, this tremendous growth has produced, and will continue to produce, great financial strain on our school community. Indeed, increased growth and diversity from a variety of standpoints, has presented the school district with nearly overwhelming challenges. Currently, because of the district's debt, the administration is again examining double shifts at both high schools and year round school options rather than additional building expansion. In addition, the District would like to provide full day kindergarten and pre-kindergarten; however, we simply do not have room for the additional services.

Moreover, our tremendous growth in student enrollment (Figure 5) has been accompanied by a remarkable increase in students requiring special education. In fact, since 1997 the school district's special education student population has grown from 605 students to its current level of 1,456 (an increase of over 135%). Similarly, there has also been an increase in students with Limited English Proficiency (LEP). For instance, since 1997 the school district has seen the number of LEP students swell from just over 50 students to its current number of 272 (an increase of over 540%). Also, the percentage of our school district's student population who are eligible for free or reduced lunch has grown significantly. Here, the percentage of eligible students has risen from 17.3% in 2001 to its present level of just over 36% (an increase of over 208%). Truly the proliferation of growth in overall student population, as well as extraordinary growth in the number of students eligible for special services, has placed a great financial burden on our school community as it strives to deliver a quality educational program from which all students will benefit and achieve. Subsequently, the need arises to hire those teachers and staff necessary to provide all students with a sound educational program. However, the need to provide such additional staff has proven exceedingly costly. This year, administration is hiring almost no new teachers resulting in increased class sizes at all levels.

Adding further to the school district's financial burden is the growing number of students enrolled in cyber charter schools. Here, the school district has seen its number of students enrolled in cyber charter schools grow from 38 in 2003 to 104 (an increase of over 273%) students today. In its current budget, the school district has allotted $687,000 to cover cyber charter school expenses. However, with calculated increases for this year, it is highly likely that this amount will not prove to be enough.

The district's expenditures are rising rapidly due to the previously mentioned growth in student population, which has led to the need for additional buildings and renovations and expansions of existing facilities. This increased need for capital funding has been met primarily by the district incurring additional debt ($307,919,213 including both principal and interest to be repaid over the next 23 years). The district's per student debt costs far exceed the state's average. These circumstances have resulted in an ever-increasing tax burden on the residents of the district.

The local tax effort has been forced to continually increase over the years while, at the same time, the state contribution in funds has remained relatively flat, hovering around the 23% mark (Figure 6) . Unfortunately, due to our increased growth, the cumulative effect of this level of state funding has not adequately met our school district's needs. The district is in desperate need of additional state funding. (Figure 7)

Since 2004 to date, the overall budget costs have increased significantly (Figure 8 and Figure 8A) . To supplement the General Fund budget, the District has hired a grant writer, established an educational foundation, and has pleaded with local township supervisors and borough council members to initiate impact fees, but to no avail. In addition, the District has applied for and received several mandate waivers (Figure 9) .

Based upon our unique situation, our top 10 cost reducing suggestions are:

  1. Provide a state bond pool for construction funding. This would significantly reduce cost of borrowing money and securing terms and rates.
  2. Increase the bidding and quote threshold for all school districts. This would reduce advertising costs and shorten time periods for purchases.
  3. Eliminate sales tax on all school construction purchases. This would save the district 6% of the total cost.
  4. Increase the prevailing wage threshold. This would save the district money because the federal prevailing wage is much higher than the local wages.
  5. Streamline the PlanCon process - it takes approximately 3 years to build a school; developers can build a home in 6 months.
  6. Repeal the limit of $5,000 on construction projects by school employees. This would enable district employees to complete projects which currently we are required to bid.
  7. Examine cyber/charter school regulations (student attendance, student fines, student costs). These schools should meet all requirements that brick and mortar schools are required to meet.
  8. Raise the threshold for contracts which must be board approved - currently this amount is $100.00. This threshold has not increased with the rate of inflation and the district would save time and money by not having the district include small contracts for Board approval.
  9. Do not force the inclusion of special education students as a result of the Gaskin settlement when such inclusion is not the recommendation of the IEP team. This would allow students to receive appropriate services in appropriate settings.
  10. Re-examine allowable class size in special needs classrooms, making the number of students in the classroom at one time the determinant number and allowing for increased case load maximums. This would permit more students an opportunity to receive specially designed instruction in a smaller setting while their classmates are being mainstreamed.

In every way we can, East Stroudsburg Area School District is willing to work with the state legislature to reduce costs of operating schools.

Thank you for your time and consideration.

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