With Huge Deficit Looming, Pittsburgh Schools Look to Cut Back (PA)
April 5, 2011
Faced with the possibility of running out of money next year, Pittsburgh Public Schools Superintendent Linda Lane on Monday announced new belt-tightening policies and the creation of an internal team that will examine all spending in the district.
“We are at a point where more dramatic changes must be made in very short order,” said Ms. Lane, who called for “an open and honest dialogue about what matters most.”
Ms. Lane, who announced the spending restrictions at a meeting of the board’s Business a nd Finance Committee, called for the elimination of all unnecessary department travel and a hiring freeze. She also said major expenditures now would require her approval before being put out to bid.
The district, which already had implemented a 10 percent cut in administrative budgets, faces a fiscal challenge made more drastic by cuts in the governor’s proposed budget.
“We’re not talking about a problem that is going to be solved by reducing supplies here and there and turning off the lights,” Ms. Lane said. “That isn’t going to do it. It’s not going to be enough. We know that there are going to be some difficult choices ahead.”
Pete Camarda, the district’s acting finance officer, told the board members that a projected operating deficit of $8.7 million this year has ballooned to $23.9 million. The proposed state cutbacks are expected to blow the deficit for 2012 from $53.6 million to $68 million.
“You will see our cash dwindle as we advance,” Mr. Camarda said. “We don’t have money to pay salaries in September [2012] based on our current situation. By September 2012, we can’t pay salaries, we can’t turn the lights on, we can’t pay the water bills or electric bills. We can’t pay the bus companies or buy books for students. We can’t pay the bills.
“We have to take extraordinary action. Steps have to be taken. ??? Our numbers are scary, really. The worst I’ve ever seen.”
Board member Thomas Sumpter expressed frustration, saying the district already had been headed for a financial crisis that was exacerbated by the governor’s proposed cuts.
“We should have been on a reduction level all along,” he said. “How many bake sales, how many chicken dinners can we sell to make up the difference? How many high schools do we close?”
Board member William Isler said he applauded the formation of the internal committee but asked if that would be enough.
“I wonder, given the fact that we are entering very, very different waters these days, if an internal/external committee would not be the thing to do,” he said. “[There’s going to be] a tremendous amount of revenue and/or tax shifting.
“I think that as many ideas and potential advice that we can get to help us at this time would be wonderful.”
When some members voiced reluctance to pay for outside input, Mark Brentley Sr. suggested that people who had been involved in Pittsburgh schools in the past be asked to contribute ideas as part of a “schools summit.”
In other action, the district’s Charter Review Team recommended approval of a new Propel Charter School at 901 Pennsylvania Ave., North Side. The charter application had been resubmitted to the team after having been rejected in February for being incomplete.
After some board members expressed concern that the charter school had not received a second public hearing — which was not required — it was decided that the board’s April 25 meeting would be publicized to residents as their chance to speak out.
Read more: http://www.post-gazette.com/pg/11095/1137073-53.stm#ixzz1IezxIivW