What’s the status of ASD’s budget?

Charter schools’ response to tuition cut awaited as means to close $6M gap

The Allentown School District awaits word from the 23 charter schools it asked to accept a voluntary 10% tuition reduction so the financiallystrapped district can balance its $341.8 million budget.

Although the district begins its 2019-20 fiscal year not knowing where it will get the $6 million needed to balance its budget as required by state law, it doesn’t seem to be sweating just yet.

Q. When must charter schools let the Allentown School District know if they will take a tuition reduction?

A. The Allentown School District did not include a deadline in the official request it sent charter schools last week.

“We expect they understand the level of importance around these decisions and will communicate back shortly,” district communications director Julie Benjamin said. Q. But will charter schools agree to a tuition reduction?

A. A handful of charters have told The Morning Call they are not interested in taking a tuition reduction. Ana Meyers, of the Pennsylvania Coalition of Public Charter Schools, which represents a number of charters in the Lehigh Valley, previously called Allentown’s 11th hour request “despicable.”

So it remains to be seen how much if any of the $6 million gap Allentown will close based on the largess of the charter schools its students attend. Charter schools are publicly funded but privately run. Q. What happens if charters

don’t agree to a tuition cut?

A. That’s unknown; the district does not have an alternative plan in place.

“We will be continuing to explore options,” Benjamin said. “We do want to avoid drastic reductions in programs or people. Those are often the inevitable decisions with deficits this large.” Q. Is there a timeline for when Allentown needs to figure out how to make up the

final $6 million before running afoul of the state’s balanced budget requirement?

A. Not anytime soon. The district submitted its budget on time to the state Department of Education. And as of right now, just weeks into the new fiscal year, there is enough money to pay the bills and make payroll.

“The district has the ability to meet financial obligations until the spring,” Benjamin said. “Our continued plan is to reduce the charter school expense line commensurate to the 10% request. If something else happens in the meantime then we would be happy to adjust.”

Q. Why is Allentown asking charter schools to take a tuition cut?

A. Allentown has seen its charter tuition bill jump from $10 million IN 2009-10 to an expected $60 million in 201920. Charter school costs are one of the largest in the district, which educates 17,000 students.

There has been much discussion surrounding charter school law, which has not been updated since it was passed in 1997. On Tuesday, Gov. Tom Wolf announced plans to change the law, including using executive action to better enforce transparency and accountability with charters. Democrat Wolf also proposed legislation that would change the formula for funding charter schools, including for special education and cyber charter students. Those appear to be tough sells in a Republican-led Legislature. Q. Did Allentown submit a balanced budget to the state Department of Education? A. Technically, yes. Allentown submitted a balanced budget by assuming charter schools voluntarily will accept 10% less tuition, so it does not now show a deficit. That would change if the charters reject the

district’s call to pay them less. It remains unclear what will happen if the remaining $6 million cannot be found. Q. Wasn’t Allentown also short in its 2018-19 budget?

A. Yes, Allentown discovered in the spring it was almost $8 million short, mostly from under-budgeting on salaries. To meet its financial obligations the school board took out a $10 million loan that will cost district taxpayers $4 million interest stretched over a decade. Morning Call reporter Jacqueline Palochko can be reached at 610-820-6613 or at jpalochko@mcall.com.