Bond issue sought to settle school suit
Steel Valley tries to fix gender pay disparity
School districts often rely on bond issues to finance big-ticket items such as new buildings. But using money from a debt issuance to fix gender-related pay disparities is far less common, experts say.
That’s the approach the Steel Valley School District hopes to take after reaching a recent federal court settlement for an undisclosed amount with teachers over genderrelated pay discrimination, according to a petition filed in Allegheny County Common Pleas Court.
Steel Valley is asking a judge to give it permission to issue $1.75 million in general obligation notes.
or bonds, to address pay disparities across the district, according to the petition. Attorneys for Steel Valley say the district would otherwise need to hike real estate taxes.
Many states have laws on the books that allow that typeof arrangement.
“Not a best practice but sometimes necessary,” said Michael Belsky, executive director for the Center for Municipal Finance at the University of Chicago Harris School of Public Policy, inan email.
Gary Gray, a visiting professor of finance at Penn State University, described the petition as “extraordinary,” adding that he has never seen a debt issuance specifically to raise money to address gender-related paygaps after a settlement.
“When you look at the ‘Me Too’ movement and other things occurring, school districts have to thinkof ways to make everythingfair,” he said.
Local governments sometimesissue debt to pay a onetime judgment, allowing them to spread the cost over several years instead of paying the whole amount at once, said Naomi Richman, senior vice president at Moody’s Public Finance Group,in a statement.
“That said, we’re not aware at this time of any cases involving Pennsylvania municipalities, including school districts,” she said.
The salary adjustments come after five female Steel Valleyteachers filed a suit in U.S. District Court against the district in May 2017, arguing they were hired at lower salaries than their work experience merited. Meanwhile, other“similarly situated” male teachers werehired at a higher salary step,the complaint said.
Despite work experience ranging from one to five years before joining Steel Valley, the teachers said theywere hired at the lowest stepon the pay scale.
Steel Valley said it was its “policy” to hire teachers at the bottom pay step, despite paying some male teachers more, according to the lawsuit.
The teachers listed in the complaint were hired between1997 and 2008.
As a result of the settlement, which was reached April 19, the district reviewed three years of employment records to correct similar pay disparities elsewhere in the district with a lump sum payment, according to the petition. The district does not say how many employeesare affected.
Steel Valley, a 1,400-student district that serves Munhall, Homestead and West Homestead, employs about 200 people, including about130 teachers.
Jerri Ryan, listed as an attorney representing the district, did not immediately respond to a request for commentThursday.
A hearing on the petition is scheduled for 10:30 a.m.June 13.
Krisha DiMascio, the attorney who represented the five female teachers in the federal lawsuit, said she is “extremely proud” of her clients for having the courage to come forward about the payissue.
She said the five teachers love Steel Valley and love teachingthere.
She praised Steel Valley superintendent Ed Wehrer for taking steps to equalize pay for affected teachers. Mr. Wehrer could not be reachedfor comment.
Ms. DiMascio would not release the amount of the total settlement the district must pay the five teachers, citing a confidentiality agreement.
Attorney John Smart, who represented Steel Valley School District in the lawsuit,did not return a call onthe matter Wednesday.
A spokesperson for the teachers union, the Steel Valley Education Association, could not be reached.