With state lawmakers nearing a five-month impasse over a budget, Pennsylvania school districts, counties and other public agencies have taken out loans to keep afloat.
Some schools say that borrowed time is running out, with closures expected this winter if nothing changes.
What’s worse, some say, is that when schools do finally emerge from their government-induced financial crises, many expect to be saddled with debt from borrowing fees and interest on the loans they’ve taken out.
Rep. Gina Curry, D-Upper Darby, has introduced a bill that would require the state to pay schools back for these added expenses “in a matter of fairness and civic responsibility.”
“These loans come at the expense of taxpayers and students because, currently, not a dollar of those lending costs and fees will be reimbursed to the districts,” wrote Curry. “These borrowing decisions have resulted in significant interest costs and fees, which ultimately divert taxpayer dollars away from classrooms, student support, and programming.”
In Delaware County, William Penn School District is struggling without the 55% of its revenue that comes from the state.
“We’re in a situation where our hands are physically tied. There’s nothing else we can do,” school board President Monique Boykins said. “We cannot keep borrowing money. If we keep borrowing money from banks, that means taxpayers will have to continue to pay more money.”
Morrisville School District in Bucks County said their schools will close at the end of January.
“Over the past several months, we’ve used every available tool to stretch our limited resources, including delaying payments and freezing expenditures,” wrote Superintendent Andrew Doster. “We are currently operating with less than 50% of our annual revenue available, due to the state and federal budget impasses. Unless we receive our state funding that is owed to the district since August, by mid-January, we will be unable to meet payroll and operational costs.”
Though the federal government appears close to ending its shutdown, it only accounts for a small fraction of education funding. The vast majority comes from local and state sources.
Doster and Boykins are among a growing chorus of concerned educators and administrators who have pleaded with the state legislature to pass a budget and fund state institutions. Last week, Gov. Josh Shapiro hinted that the Republican-led Senate and Democrat-led House may be on the verge of closing a deal.
“I expect them to come back here in the next couple days and wrap this up,” said Shapiro after bringing leadership to the table over the course of several days.
The Senate is scheduled to return to session Monday, though rumors have swirled about an earlier deal. The Senate has convened infrequently this session, meeting 39 times in the 280 days since Shapiro introduced a budget.
Meanwhile, taxpayers have given the state $89 million in revenue each day since July 1 without any of it going into the programs it’s meant to support, The Center Square reported.
“Our schools and the students they educate should not be penalized for the legislature’s failure to meet its constitutional, legal, and moral obligation to pass a budget on time,” Curry wrote.
Lawmaker says state should pay loan interest for schools
