Local Government TV

Thursday, April 07, 2016

How Much Did State Spend on LV Schools?

Though I avoid covering school districts if I can, I'll be the first to agree it's where most public money is spent. In the state Budget that has finally been adopted for 2015/2016, all Lehigh Valley Schools saw increases, which you can see on the Department of Education website.

The funding below is just for basic, and not special, education. As you can see,all Lehigh Valley school districts received small increases, excepting Bethlehem. The increase in funding for Bethlehem was 6.9%, and really stands out in comparison to other school districts. The smallest increase - 1.6% - went to Northwestern Lehigh.

State subsidies to school districts have dropped from over 50% in the 1970's to just 35%.

Northampton

Bangor - from $9,457,706 to $9,723,681. 2.0% increase
Bethlehem - from $29,326,976 to $31,357,385. 6.9% increase
Easton - from $20,016,858 to $20,662,708. 3.2% increase
Nazareth - from $8,687,012 to $8,865,486. 2.1% increase
Northampton - from $13,394,465 to $13,864,989. 3.5% increase
Pen Argyl - from $4,749,299 to $4,896,869. 3.1% increase
Saucon Valley - from $2,949,230 to $3,022,603. 2.5% increase
Wilson - from $5,393,334 to $5,580,981. 3.5% increase

Lehigh

Allentown - from $100,898,826 to $103,531,954. 2.6% increase
Catasauqua - from $4,068,869 to $4,162,157. 2.3% increase
East Penn - from $11,209,456 to $11,552,729. 3.1% increase
Northern Lehigh - from $6,948,973 to $7,147,259. 2.9% increase
Northwestern Lehigh - from $5,597,871 to $5,685,419. 1.6% increase
Parkland - from $7,066,468 to $7,260,292. 2.7% increase
Salisbury - from $2,260,802 to $2,325,184. 2.8% increase
Southern Lehigh - from $4,368,501 to $4,461,447. 2.1% increase
Whitehall- from $7,405,210 to $7,563,722. 2.1% increase

39 comments:

  1. Public school financial matters are always difficult to decipher. There are many
    confusing and moving parts.

    Whatever increased amount of funding displayed might actually be immediately used up because those funds came attached to newly required mandated services and regulations. Thus, little, or nothing more to cover increased costs for existing obligations.

    Also consider how our heroic state politicians use gimmicks to make themselves look good by shifting/delaying their usual funding obligations off to someone else, as happened for about a decade with educational employee pensions.

    By the way, the teacher pension system was ALREADY SCALED BACK since the passage of PA Act 120 seven years ago. We don't hear enough mention of this.

    Fred Windish

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  2. How much is going to Philadelphia schools? Taxpayers from six hours away send a lot of money to enable the wasteful addict that is Philly. Just look at the PA Turnpike's funding of SEPTA.

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  3. Bernie,

    One thing worth mentioning here is that while most Lehigh Valley districts receive anywhere from five to twenty percent of their total revenue from the state, Allentown depends on the Harrisburg for well over 50% of its funding. That explains Allentown's high number shown above. So when Governor Wolf and other Democrats complain about disproportionate spending on education spending rest assured the state/taxpayers have been doing their part. Tax dollars are being poured into the states most distressed districts/Democrat controlled areas, and yet they are still cash strapped.

    Scott Armstrong

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  4. Bernie,
    With the depiction of what looks like allentowns water war calculating miscalculators, PCN or whatever the mouthpiece circus props were called I had thought there would be a morning gut busting belly laugh redd¿¡
    With the led being fed to allentowns school aged children,not only via water foutians butt also through the failing ailing infastructure sold as the CURE¿¡ Now how will this infection icubated and negated effect the childrens children now drinking from from alentowns foutain of youth drinking this irreversable taint now under a higher in house collective rule, for the poisioning of the populus as a whole¿¡

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  5. An example of what is wrong with the system. Parkland should get no increase and it should be given to Allentown. Better yet, Parkland and ASD should be forced to merge.

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  6. Scott, I see no reason why the LV has so many school districts, and think the community would be better served by just one.

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  7. Maybe you should spend more time covering the school districts as they seem to have no spending controls with the rubber stamp school boards. Bethlehem school board and it's superintendent, are way too lovey dovey in their spending decisions and is always crying poor yet can build new schools, buy questionable health risk turf fields and provide administrators raises when the entire district test scores are plummeting.

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  8. School districts that are mostly democratic receive more money than those that are republican.. the biggest problems facing all school districts is the out of control pension system. School districts now are paying 30.03 % of salaries into the pension fund, teachers pay in 7.5%. The pension fund is underfunded by over 50 billion. this number will go up dramatically this year if the investments underperform, which they most likely will. This pension system will bankrupt every school district and the state itself. the state pension system is almost as bad. School teachers and administrators can retire with 100% of salary if 40 years of service, 75% with 30 years. How would the taxpayers like to retire at age 52 with 75% of salary and receive health care supplement. these pension funds are unsustainable and will blow up all budget in the near future. There doesn't appear any will to address these issues until it is too late and a serious crisis erupts.

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  9. Bernie O'Hare said...

    "...I see no reason why the LV has so many school districts, and think the community would be better served by just one."

    I'm not sure that one district in the Valley would make things better, or if it would just bring the good school districts down to the level of the lesser ones.

    I'd be open to seeing more study on this, but if I look at how it works with individual students in public schools, we probably have our answer.

    Maybe the better way would be to fund students, not the districts, and let the parents choose.

    After all, the commitment should be to educating the child, not supporting a broken system, right?

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  10. "Maybe you should spend more time covering the school districts as they seem to have no spending controls with the rubber stamp school boards."

    I should but have numerous reasons for not wanting to do so. The chief of these is that public schools are completely alien to me. I am a product of Catholic schools, as were my children. I also do not understand the bureaucratese spoken by administrators, and get frustrated trying to figure out what really is being said. Also, every school district is different. But clearly, that is where most of the money goes, and to be honest, where most of it should go. I am very much a believer in the importance of education.

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  11. Whenever the word EDUCATION is used it really means more money for teachers either through salaries or benefits. the problem is that their salaries and benefit costs are increasing constantly, while the taxpayers incomes have been flat for 7 years, and the taxpayers benefits have been reduced while costing them more. The taxpayers are then compelled to pay the elite packages for the teachers and administrators from incomes that are predominantly less. There needs to be a elimination of the property tax, why should property owners be singled out as the only funding source of education. It could be replaced with a $500. per capita over 18, and an income tax. The school teachers and administrators, they love the property tax. they usually benefit with tax increase by many multiples. Very little real money ever gets to improve real education. 50% per pupil cost vouchers would cut the cost of school districts in half, while allowing parochial schools and private schools to try new methods, not endorsed by the teachers unions which are controlled by the far left. You want to hear screaming and rioting just talk about competition in the educational system. Without competition, you will never see improvement or cost reduction.

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  12. Bethlehem has kept costs under control. The past 3 years we have kept increases to 0.27%, 2.1% and 4.1% respectively. The 4.1% for the upcoming 16-17 fiscal year will continued to be whittled down as we move toward budget adoption in June. However this represents what we control. When factoring in PSERS increases and Charter tuition (both state mandated costs) those modest increases balloon to double digits. PSERS and Charters represent 20% increases the past few years. We have no control over those items. The PSERS fiasco was caused in 2001 when then Gov. Ridge and the legislature (Both D's and R's) voted to increase benefits for themselves by 50% just before a market crash. The system was significantly over funded so they took pension raises and cut the state share of reimbursement along with district shares.
    Charter school funding is broken must be fixed. What started as healthy competition has morphed into a cash cow thats spinning out of control. Competition has resulted in higher costs for both sides as we now support 2 parallel public school systems. One is accountable to the voters and the other is not.
    And for the record administrators in Bethlehem has taken multiple pay freezes over the past 6 years as have all other employee groups. Salaries are not our problem. Our employees re not overpaid. Our top administrators are not overpaid. BASD is a 2,000 employee organization. Name me 1 other 2,000 employee organization where the CEO and CFO make under $175,000. Personal opinions about what teachers do and the schedules they work should not translate into accusations of being overpaid.
    I am certainly ok with people disagreeing with me, but I prefer if that happens after they know the facts and not talking points.

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  13. How much is going to Philadelphia schools?

    An extra 7.55%. Pittsburgh and Chester were the other big winners. A vote for a Democrat anywhere in PA is a vote to send more of your tax dollars there.

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  14. Mike,

    Teachers are over compensated. Their salary and benefit package exceeds what they could make in the private sector with similar degrees and days worked. Ad to this the fact that they are paid with tax dollars. So they have a pay, benefit and retirement plan that is far more generous than that of the average payer.
    Hey if we could print money then this wouldn't be a problem.

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  15. Once again, the teacher pension formula described WAS cut back several years ago. The new multiplier is now 2%, rather than 2.5%. Although the change only applies to those hired over the past few years, the curbs HAVE been put in place along with several other limitations and shared investment responsibility checks.

    At this time, local districts are contributing a greater percentage to help make-up for nearly a decade of NO contributions, even though the employees maintained their own contributions as agreed. The present increased local district payments are scheduled to gradually reduce back to levels closer to traditional amounts.

    I have been receiving a teacher pension for 10 years, so am collecting under the prior plan. There is no free medical coverage, by the way, although it was a good plan with reasonable deductibles and co-payments. Now, I'm on Medicare.

    People seem not to understand the teacher pension system was similar to a 401(k) plan with (generous) matching employer contributions all along. They also fail to acknowledge the incredible power of compounded interest using regular payments over a very long period. The final pension sum, from which retirement payments are made to the employee (annuity-like) grows very large, as it would for anyone else following such a disciplined formula.

    Unfortunately, traditional pension plans, including those not even requiring employee contributions, have been almost phased out. Same for the concept of "career" wherein someone remains with a single employer for many years.

    Our government politicians bear responsibility for much of these loses.

    Fred Windish

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  16. Scott, 12:04 -

    I don't know how else to pay teachers other than with taxes. Property tax reform that would create more actual payers would help, I believe.

    Yes, teachers are paid appropriately now.

    Fred Windish

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  17. This comment has been removed by a blog administrator.

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  18. 15,000 students. 2000 employees. Screw you taxpayer.Pay up or we'll sell your house.Pay up grandma ,we don't care if you have a cracker a's long a's I have a 50000/yr. Pension. Pay up shut up. The slime ball reps. Belong to us.

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  19. I sleep fine because I am not afraid to state my name and what I believe in.

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  20. Fred you are absolutely correct. The changes made in 2010 are working and it is making a difference. People fail to realize if we eliminate all future employees from PSERS then where does the money come from to fund current and future retirees? It would take several large pension bonds with significant interest payments to end PSERS and SERS and move exclusively to a 401k style system.

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  21. Hey taxpayers we need a union. As soon as soon as we can concoct a way to hold the tax spenders hostage . Soon we'll have two year olds attending pre pre pre school. It's for the children. Pay up Grandpa, you should be happy we allow you to pay taxes, you don't expect an illegal with 6 kids in school to pay a nickel out of her 70,000 in welfare benefits . TFP

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  22. Of all the scams the education industry spring on the taxpayer, the charter school scam interests me the most. As more students transfer to the charter schools the remaining students cost more per student. 1000/10=100' 1000/9=110. Now the charters are paid 110 per student.This escalates because the base cost of the of the school district escalates yearly as the number of enrolled students falls or remains flat.

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  23. One other thing about the pension plan, the taxpayers paid close to $7 billion in interest to the fund this year,(page 62 of the 2015 financial audit), the schools teachers can cash out and receive all the money they put in + 7.5% annual interest. After 20 years they can take out the money in a lump of near $500,000, they can then take a year off, get a job at another school district and start over. some of this was changed in 2010 but all the others are eligible. No matter the changes made in 2010, the pension funds are all insolvent and are being kept alive with loans and taxpayer payments. The next recession will send most in the country over the edge.

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  24. PA's per pupil spending ranks in the nation's top ten. PA's per capita income ranks 23rd. Public education is greatly valued in PA, to the point where we significantly spend beyond our means. Our teachers are some of the best compensated in the country. Our SAT ranking is 41st. We're getting ripped off and our kids are being cheated by teachers who are union members, first, and teachers after that. Complain about teachers and the whine it's poor parents. Complain about the being overpaid, and they brag about the great job they're doing. Reduce teacher pay by 10% across the board and there'd be no discernible difference in the results.

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  25. One other thing, the pension fund projections are all based on a 7.5% return on investment, last year it was 3% If things don't shape up this year it may be in negative territory, if it is, the school districts will be looking at a 40% contribution.

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  26. Michael F, I have deleted the slur from an anonymous coward. But it takes guts to do what you do. It's almost as unpopular as being a blogger.

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  27. 2:41 -

    You bring up an interesting point about cutting teacher pay an immediate 10%. I agree, student success (as measured) would change little. Also true, the current pay could be INCREASED by an immediate 25%, and student measured success would actually change very little.

    You see, teacher pay and student success are not really cause and effect. Paying more for a lawnmower usually means getting a better built, more durable machine. None of that applies to public education.

    Of course, we first need to define what is educational success and if the measuring tool of choice is reliable, and might there be a better tool.

    Fred Windish

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  28. Ohair you're an asshole with teeth. You are so brave. You are an old fool with brain damage. You live in a very small place brave shit.

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  29. I have found that the people who complain the most about the public pensions have the least knowledge on the subject. They will moan on and on about it, but once they are told what has happened they look at you with a deer in the headlight stare. Charter schools are a major drain on the taxpayer. I have yet to see any evidence that they are any better at what they do then a traditional public school. Major reforms need to be undertaken on charters in order to get everything under control. Based on what i have seen on the public access salary sites there are a lot of teachers making way too much money based on their years of service and the actual time worked during a year. Im a public sector employee (Commonwealth) for almost 8 years and there are some teachers with the same years of service making double what I am making (i have no problem with the amount of money i make. I think i am fairly compensated). I'm pretty sure my job would turn most of their stomachs. A salary that high should be something that isn't approached until near retirement (if even then). The number of administrators also has to be reduce. I see too many chiefs for not enough indians. What the house/senate/governor have to do is start working on legislation to move to the consolidation of the 500 plus school districts to one or two district per county. The saving realized from this would be large both in the short term and long term. Sorry for rambling here.

    Hank_Hill

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  30. "The present increased local district payments are scheduled to gradually reduce back to levels closer to traditional amounts."

    Fred, My understanding is that PSER payments will continue to rise for at least the next several years,then level off but stay at that high rate well past our life span on this earth. This information/understanding comes from many different sources.

    Scott Armstrong

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  31. "Our government politicians bear responsibility for much of these loses.

    Fred Windish "

    And Fred the PSEA/teachers union selfishly prevents any reform of the pensionproblem and in doing so they are bankrupting the state and hurting public education.

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  32. Mike F. wrote,

    "Fred you are absolutely correct. The changes made in 2010 are working and it is making a difference."

    Working? Making a difference? Allentown has been bled white in the last few years and will continue to bleed out.The PSER problem that the PSEA/teachers' union won't allow to be fixed is destroying public education in PA and hurting the poorest districts first and foremost.

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  33. Hank Hill,

    I have been raising the alarm on the pension issue for years, in the meantime the ASD has lost hundreds of teachers and many programs in order to pay the exploding PSER obligations.In the meantime the PSEA/teachers' union has blocked every effort of meaningful reform.

    Is this misinformation?

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  34. Anyone who thinks the pension fund is under control, is not paying attention. It is insolvent, no one wants to take on the unions, and the unions believe there is more money somewhere to sustain this,. It is going to implode and it will not survive. The assets have been declining by 1.5 billion a year, and it is being made up by the taxpayers and floating bonds. The fund has been paying out over $2.5 billion a year over what it takes in. The plan is about to be downgraded by the rating agencies. Just Northwestern Lehigh has had over $50 million added to their debt just from the pension. The bigger schools are much more. It appears they are just going to let it all collapse.

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  35. I understand that Fred and mf are retired teachers, but they are not looking into this pension, the auditors and many legislatures know what is going on, but there is no political will to deal with it, The teachers union has everyone frozen. Maybe they should just turn it over to the union and let them figure it out. or increase the payments by the teachers to match the amount paid by the taxpayers.

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  36. Ray,

    Don't let the facts intrude on the assertions made earlier that there really is no problem here. And even if there is a problem then it is somebody else's fault, and one would think by reading this thread that those involved think they have a get out of jail free card if they can tie a Republican to it. Currently the public employee pension fund has over 60 billion dollars in unfunded liabilities.Where is that money going to come from? That amount is twice the size of the states annual budget and growing. It is a metastasized cancer on both the state and public education.

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  37. Scott @6:43 -

    I just did a quick Google and found a more recent projection for the coming 10 years that DOES support what you wrote. I don't have time now to research it enough to comment further.

    I was referring (from memory) to an initial 20 year projection published right after ACT 120 of 2010 was passed. That showed a 5 year duration of these higher contributions followed by a gradual decrease.

    This is an important topic for discussion. In any case, I hold our elected politicians in Harrisburg responsible as much as I blame the overly powerful PSEA.
    I believe, because the elected politicians operate under a different retirement plan they prefer not to discuss ANY of this further.

    Fred Windish


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  38. Fred,

    You are trying to be an honest broker in this discussion and your insights are appreciated.

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  39. All the projections are based on a 7.5% return on investment. Last year it was 3%. what will it be this year? If it does not make 7.5% the difference is made up with an increase in the contribution by the taxpayers. It has $51 million in assets and $43 million in liabilities. The taxpayers contribution has increased 528% in 7 years. anywhere from 14% to 31% in any year. It is now 30.03 % this year. and supposed to only go up .59% next year. But this is based on a 7.5% return. Miracles do happen , but I would be surprised to see a 7.55 return this year.

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