Philly SRC hears dire warning on school funding

City public school students, already lagging in academic achievement, are in danger of slipping further if a looming budget gap of as much as a half-billion dollars becomes a reality, school officials were told Wednesday night.

"The incredible amount of progress we've made can be reversed if resources aren't available," Deputy Superintendent Leroy Nunery told the School Reform Commission. "We hope the public will rally to this particular call."

The potential gap of $400 million to $500 million for 2011-12 comes on top of a shortfall of $40 million for this school year, which triggered an immediate hiring freeze and sharp cuts in discretionary spending.

Next year, larger classes, layoffs, cuts to school budgets, and a deeply slashed central office are all likely.

Because of a host of factors - state funding, a potential voucher law, a lawsuit that could eliminate charter-school enrollment caps - the exact size of the budget shortfall is not yet certain.

Superintendent Arlene C. Ackerman, who was in Denver at a school administrators' meeting, said the priority was keeping in place the academic components of Imagine 2014, her five-year strategic plan. The plan includes a costly outlay for restructuring failing schools.

For the last two years, the district added programs and relied on one-shot federal stimulus aid to balance its budget. Chief Financial Officer Michael Masch defended the latter move at the SRC's monthly voting meeting.

Many districts are in similarly painful places, Masch said. "There is not something we did wrong. It's not just us."

Counting only the loss of about $300 million in federal funding, "it will be difficult no matter what happens," he said.

But one state proposal would roll back funding to the district to 2007-08 levels. That would be dire, officials said. "We're not asking for an increase in funding. We're just saying, do no further harm," Masch said.

Commissioner Johnny Irizarry said the district's eight years of rising student test scores must be stressed as decision-makers contemplate how much state funding to allocate for city public schools.

"I think the rest of the state is not even aware of what Philadelphia is achieving," Irizarry said.

Nunery said the district and other organizations had launched a campaign to stir support for the district's cause. Large posters lined the auditorium where the SRC met, exhorting people to "Protect Public Education."

The district must adopt a 2011-12 budget by the end of May.

In a marathon meeting that continued into the late evening, commissioners also heard again about the 70,000 extra seats in city schools.

The district, which now puts enrollment at 157,000 students, has been shrinking for years, with many pupils defecting to charter schools.

Officials said they expected to lose 11,000 more students during the next five years. School closings are likely, but the district said it was not ready to identify buildings to shutter. Still, officials are banking on $25 million in savings from school closings and consolidations in the next two years.

Nunery signaled that the district would likely recommend changes in grade configurations. Schools are now a hodgepodge of grade groupings. There are 20 configurations citywide, which means inefficiencies, officials said.

The SRC also voted to extend the contract for managing the district's Broad Street headquarters through June to allow for new bids. It will pay Elliott-Lewis Corp. $800,000 for a four-month extension to its contract.

As The Inquirer reported, district officials decided to recommend restarting the contracting process after reports of improprieties in the bid process surfaced. John L. Byars, the district's chief of procurement, has been accused of trying to steer the contract to U.S. Facilities, a rival bidder. A new contract will be awarded later this year.

The SRC also voted to renew four schools' charters for five years: Youthbuild Philadelphia Charter, Mastery Charter-Shoemaker, Harambee Institute of Science and Technology Charter, and West Philadelphia Achievement Charter Elementary School.

But a measure to renew the charter of Community Academy of Philadelphia failed.

Commissioners Irizarry and Denise McGregor Armbrister voted to approve the charter. Chairman Robert L. Archie Jr. abstained because his law firm has done work for the school, and Commissioner Joseph Dworetzky voted no. Dworetzky said he had concerns about the school's academic performance, which has been shaky.

"We are in a world, like it or not, where there are not unlimited resources for education," Dworetzky said.

The school's current charter expires June 30. The SRC could still renew the charter, and district officials were still researching Wednesday night what would happen if no action was taken.

Officials also voted to allow four other charter schools to add one grade each next year, and said they would decide on other charter modifications by April.