School district adjusts to state-budget realities

The Philadelphia School District has been forced to re-evaluate its budget as it prepares to deal with an estimated $160 million shortfall, a figure that could rise, a district official said yesterday.

The state budget deal tentatively reached last week gives the district $144 million less in basic-education subsidy and federal stimulus funding. The remaining $16 million comes from cuts to line items in the budget concerning pension, capital programs, pre-K and alternative education, said Michael Masch, the district's chief business officer.

Nevertheless, Masch said, district officials will manage to balance its budget and implement programs proposed under Superintendent Arlene Ackerman's five-year school reform plan.

"The superintendent has made it clear that we are to preserve every penny in reform and improving education to our young [people], but also to balance the budget," he said.

Also, charter school reimbursements will remain roughly the same as last year, at $119 million, despite Gov. Rendell's proposed $14 million increase

Over the next few weeks, officials will try to adjust what had been a $3.2 billion budget as they wait for the final numbers to come from Harrisburg, Masch said.

Masch said it was too early to say what district programs will be affected, or if any cuts would be made, but said that by October he should have a better idea. The final state funding could be even less and won't be known until legislators finalize the budget.

He said, however, that the district was committed to plans such as the expansion of alternative education programs, which serve over-age and high-school dropouts, and teacher recruitment.

"We've done certain things and we won't go back," he said.

One of those things included a revamped teacher-hiring campaign that cut teacher vacancies by more than half at the start of the school year.

About a week ago, leaders of the House Democrats and of both parties in the Senate announced a $27.95 billion budget deal that included $1.2 billion in recurring revenues - mostly new taxes.

However, Rendell threatened to veto it unless it had a more reliable source of revenue to fund areas such as health care and education.

The deal reached Friday, if enacted by legislators, represents an increase of $300 million in statewide education spending, said Johnna Pro, spokeswoman for state Rep. Dwight Evans, who also chairs the House Appropriations Committee.

That figure, however, is less than Rendell called for in his budget proposal earlier this year. The Philadelphia district based its budget on Rendell's proposal.

Even with less funding coming to Philadelphia, Masch commended state lawmakers for striking a deal under difficult economic circumstances.

Although, he added, "we would have liked to do better."

Associated Press contributed to this report.