Directors like Michele Cann loved sitting under the lights, just below the stage. "It's so cool in here," she said. Superintendent Thomas E. Persing seemed to agree. "If you're going to have a meeting, be good to yourself. This is a great place," he said.Dr. Persing was referring to the spacious and mostly empty auditorium at Freedom High School, where Bethlehem School Directors met last night to discuss, of all things, energy savings as well as a tentative budget for next year.
Tentative Tax Hike Approved
Things heated up pretty quickly. A sharply divided Bethlehem School Board narrowly approved a tentative budget for next year, 5-3. If this budget becomes final in June, it means that Bethlehem homeowners will see a 6.17% property tax increase. Homeowners assessed at $60,000 would see a $154 tax increase. Directors Eugene C. McKeon, Irene Follweiler and President Loretta M. Leeson voted against the $207.2 million budget, but the five members voting yes argued they could continue to look for cuts. "It's just to move it along," said Director Rosario S. Amato. Director Judith A. Dexter was absent.
Jolene Vitalos, president of the Bethlehem Education Association, raised several concerns prior to the vote. She questioned why Directors would raise taxes to "stockpile" $2 million into the fund balance. District officials had previously argued that a larger fund balance means a better credit rating, but Vitalos countered that the real reason is to "allow the district to borrow more money to renovate its fourth middle school."
She also complained about the reduction in staff, noting that students returned to school last year with 46 less teachers and other professionals who could work directly with them. "Once again, a reduction of approximately 35 positions is proposed without any significant decrease in school enrollment," she noted, leading to class sizes "well above" the district's recommended guidelines.
Vitalos disputes that six administrators are being eliminated, noting she could only find two.
Board Selects Own Engineer to Develop Energy Savings Plan
Directors also agreed, 5-3, to select D'Huy Engineering to come up with an energy savings plan in the school district, nearly 5 months after rate caps were removed from PPL Solicitor Don Spry ruled that even though D'Huy is the District's engineer, there is no conflict in hiring that firm to come up with an energy savings plan. D'Huy, along with ten other companies
Lawrence Eighmy, an unsuccessful bidder with The Stone House Group, was highly critical of the Board's decision to hire D'Huy. "You will approve D'Huy to oversee their own work," he complained, adding that Directors should have addressed energy savings long ago. "It's a major part of your oversight. ... You had no one watching the shop."
President Loretta Leeson shook her head as Eighmy spoke, but said nothing.
Freedom Band Wonders if Liberty is Getting Preferential Treatment
Meg Selzer, VP of the Freedom HS Band Parent organization, told Directors that Freedom Band members who went to Disney World last year had to pay for the trip out of their own pockets. Their request for funding was rejected. Yet Liberty's band is slated to receive $7,450 for trips to Disney World and Waikiki in 2011. "In light of the budget problems that we are clearly going to have, I wonder why the Liberty band parent organization isn't being asked to pay for that," she said.
Leeson promised to get Selzer an answer.
They are all free spending education apologists. Give voters the final say on budgets. All school taxes must be supported by popular referendum.
ReplyDeleteThe Tock
It's Election Day ----
ReplyDeleteWhere's Buddy?
"Directors also agreed, 5-3, to select D'Huy Engineering to come up with an energy savings plan in the school district, nearly 5 months after rate caps were removed from PPL Solicitor Don Spry ruled that even though D'Huy is the District's engineer, there is no conflict in hiring that firm to come up with an energy savings plan. D'Huy, along with ten other companies"
ReplyDeletethis was an unusual selection process.
Rosie Amato, NASD athletic director? Have you seen the athletic spending in Nazareth?
ReplyDeleteYep, he's gonna be find those extra cuts like OJ is gonna find the real killer.
bend over and spread those cheeks bethlehemites - by the way there's no money in the budget for lube can't afford it
ReplyDeleteThank goodness for your blog Bernie as Loretta Lesson is always making the statement "No Personal Attacks".
ReplyDeleteWell guess what Loretta, you are a complete idiot!
"It's Election Day ----
ReplyDeleteWhere's Buddy?"
Buddy is secretly playinmg for the Flyers and told me to hold on until the general.
Who would ever want to be a school director? They don't even get paid and are called "idiot" anonymously. Is that right? Does that amke you feel good? I understand being angry about a tax hike, but I have a policy against anonymous personal attacks, too.
ReplyDeleteThey want to "OVER TAX" their citizens so they have a better chance to acquire "MORE DEBT"?
ReplyDeleteHow hard to I have to hit my head to buy into this logic?
word out of Harrisburg these days is that contrary to the Governor's proposed budget districts will get less this year than last. That means higher local taxes, more layoffs and larger classes
ReplyDeleteCompared to other districts in the area, BASD does not over tax. Inform yourself.
ReplyDelete9:24 - Even though your post is ham-handed, it is generally correct. Large organizations need lines of credit to operate. It isn't about acquiring debt, it's about managing cash. This isn't some hardware store.
ReplyDeleteYeah, hardware stores must be fiscally responsibility, since they don't own a monopoly.
ReplyDelete:D
I've never heard public education described as a monopoly. Last time I checked, there were quite a few options in the area for private schools.
ReplyDeleteFrom the last budget hearing, I know that BASD's rating with Moody has dropped. The district would like to get back to a AAA rating. One thing that helps that is having a large cash reserve.
ReplyDeleteNorthampton County, under John Stoffa, believes in having a largew cash reserve as well, and it did help the county with its bond rating. Morevover, during the state budget impasse, the County was able to continue paying for vital human services, something other counties were unable to do.
So I believe both the union prez and the admin are correct. Having a larger cash reserve will hewlp the bond rating. It will also reduce the interest rate on money borrowed, making it easier to do capital projects.
Bernie,
ReplyDeleteYes, they do need to increase the cash balance. But, if you have been following what has been going on, this needs to be done to just keep the credit rating where it is. The district will never get to a AAA on it's own. Even the best run districts like Upper Darby are only rated AA. And, to be kind, this is a fiscally irresponsible district.
The major problem here is that for years the School Board just signed off on what Dr. Lewis wanted to do. Everyone, including Lesson and Dexter, never seriously questioned the financing or costs of the multiple building projects.
While they are not paid to do this job, a Board of Education is elected to be a check on the school administration. And in that role they have a FIDUCIARY RESPONSIBILITY to both the taxpayers and they students. Clearly, they did not protect the interests of those they have been elected to represent.
Eight years ago the budget was approx. $110 million and this is a $207 million budget. Yes, there has been population growth, but not nearly enough to justify an additional $97 million. And this is just the beginning as the $465 million in debt matures there is no way that it gets paid off, just rolled over into new debt. And at what future interest rate?
Reality is the School Board and the former administration screwed up in a way that will effect our children for a long time. Larger class size is inevitable. Less support staff is inevitable. Higher taxes are inevitable.
There should be a focus on spending on what really matters. And Mr. Amato, that means we get rid of an athletic director or two. I know you are the curret AD in Wilson, but really, you know that you are getting paid a full time salary (+ benefits) for what is part time work. And I would bet that most of the real work gets done by your secretary anyway. Put your personal bias aside and do the right thing. Better to cut the administartor then cut the sport that the kids actually partcipate in.
Publius
Publius - BASD was AAA rated not too long ago. And comparing BASD to a rinky dink district like Upper Darby? Please. Not a relevant comparison.
ReplyDeleteQuestion. What has happened to energy costs over the past 8 years? What has happened in technology. To act as if public education is immune from rising costs is a joke.
ReplyDeleteToo many school districts. Too many administrators. Too many superintendents. Too many school boards. Too many buses with four kids in each (please stop by Bushkill Elementary School and watch the dozens of nearly empty buses roll by). Northampton County has eight bloated school districts that deliver octo-redundancy and cost considerably more than education should. Kids get screwed.
ReplyDeleteANON 3:18 and 3:20,
ReplyDeleteYou may have been able to purchase BASD bonds that were AAA-rated, but that was only because of the insurance on the bonds, and not the underlying rating of the district. And Upper Darby is not a "rinky dink district," unless you consider a $161MM budget small. You can see their budget here:www.udsd.k12.pa.us/Budget/Tenative_Budget.pdf
Besides, larger school districts like BASD have economies of scale on their side and should be more efficient than a smaller district. This, the argument is made that we should consolidate the 501 PA school districts into larger entities. By your logic, we should be splitting up the large districts.
As for energy and technology costs, yes they have gone up but ... the laptop program was a waste of money as desktop computers could have been just as useful at a lower cost (and they are much less likely to be stolen). And, as per teh 2010-2011 preliminary budget, electric costs increases will contribute an addtional $285,693 to a $207MM budget (or 1/10th of 1%) while debt service will increase $7MM from $56.4MM to $63.4MM. And as per the preliminary budget, the total tax increase needed is $9MM(see page #6 of the preliminary budget which can be found here:
www.beth.k12.pa.us/business/budget/1011budgets/BASD_1011_Preliminary_Budget.pdf
I find it interesting - as you should - that on page #4 of this document the debt service is not listed as a "Budget Driver," even as the cost is increasing $7MM YoY. But maybe you are correct, it's teh extra cost of electric that has really put the budget over the edge.
Publius
"Besides, larger school districts like BASD have economies of scale on their side and should be more efficient than a smaller district."
ReplyDeletePublius
5:34 PM
You assume public school
administrators possess fiscal management skills. These highly paid "professionals"
wouldn't know an economy of scale if it french kissed them.
They could not command 30% of their salaries in the private sector, have not the slightest sense of financial discipline, yet DEMAND to be paid as if they could run a business where the customers could opt.
Bigger school districts are not the answer. Like bigger government, they will result in more excuses and a more unmanageable, insatiable bureacratic behemoth.
Publius - In other words, Upper Darby's budget is nearly at the level as BASD even though BASD has 5,000 more students and 8 more schools. In effect, BASD does not over tax their tax base. On the contrary, compared to even the other districts in Northampton County, it's tax rate is low.
ReplyDeleteYou assume public school
ReplyDeleteadministrators possess fiscal management skills.
Perhaps some do and some do not. The same can be said of the private sector - you know, in case you've been paying attention to the business world over the past decade. Perhaps these administrators place their customers -the students- first in their decision making.
The students aren't paying the bills. And even if they were, ridiculous capital expenditures made while reducing the number of instructors and academic offerings, increasing class sizes, and increasing pay for those who avoid the axe are HARDLY examples of putting the students first. Their own interests are always the first priority.
ReplyDeleteAnd the reward for failure in the private sector (See Wagoner, Nardelli, Thain, Lewis for just a few of the notable names) is not a new five year contract. It is a door hitting them in the ass on their way out.