Budget still relies on charter school cuts
District needs $6M, a 10% reduction in tuition
Just days before a deadline that could have resulted in late fees if missed, the Allentown School District has submitted a $341.8 million budget to the state that is balanced only if charter schools agree to a tuition reduction that saves Allentown $6 million.
The district posted and filed its 2019-20 spending plan Thursday. The school board passed a budget June 27 that was contingent on charter and cyber charter schools each taking a voluntary 10% tuition reduction to close the district’s remaining $6 million deficit.
Since June the district has made up another $2 million, Superintendent Thomas Parker said. It did so after receiving an additional $461,000 in basic education funding in the state budget, and also by increasing revenue more than $1 million through reimbursements and grants. In June district administrators had recommended the school board raise taxes 3.5%, but the board approved a 1.75% in
crease, creating the $2 million gap.
By law, districts must pass a budget by June 30 and send it to Harrisburg within 15 days. If a district does not, the state provides an automatic 30-day extension. That’s why Allentown had until mid-August to send its budget.
Allentown is expected to pay $60 million in charter school tuition for 2019-20. The district is hoping that number is decreased to $54 million with all charters agreeing to the request.
Although Allentown made a public request at its June 27 meeting asking charters to take a reduction, it did not formally ask the 23 charters until Thursday, when it sent out an email. The email, viewed by The Morning Call, included the resolution adopted by the school board on June 27 making the request and was signed by board President Audrey Mathison.
It states that the district understands it is legally required to make tuition payments,
“This is not a challenge to the existence of school choice, rather an issue of resources and our community’s ability to meet the needs of all students in our shared community.” — Resolution adopted by the Allentown School Board on June 27
but is “seeking to address costs for the betterment of all Allentown children and their families.”
“This is not a challenge to the existence of school choice, rather an issue of resources and our community’s ability to meet the needs of all students in our shared community,” it states.
The submission of the budget to the state is the latest in a monthslong financial saga Allentown has been facing.
In April, the district told the school board it was almost $8 million short in the 2018-29 budget, mostly from spending more on salaries than expected. After two contentious meetings that involved lengthy discussions, the school board ultimately decided to take out a $10 million loan to avert financial crisis.
But the district still faced a $21 million deficit for 2019-20. The district whittled that deficit down to $6 million through a number of ways, including not filling vacant positions and increasing property taxes. For the final $6 million cut, it was calling on charter schools to help.
It’s unclear how many, if any, charter schools will agree to a tuition reduction.
Last year, the district initially faced a $28 million deficit for the 2018-19 budget, but was able to carve it down. But Allentown still needed the state to come through with the final $10 million, no-strings attached, to balance the budget.