Gov. Tom Corbett’s fiscal policies are having a devastating effect on schools all across Pennsylvania, especially in urban districts. Corbett’s cuts include significant reductions in basic education subsidies, deep cuts in grants for state mandated programs, and recently a moratorium on reimbursements for state-approved (PLANCON) school renovation and construction projects – including funds already promised to and spent by numerous school districts, including School District of Lancaster (SDoL).
One of the biggest issues is the state-controlled PSERS, the Public School Employees’ Retirement System, which covers all school employees (even service staff). After willful manipulation of the system by former governors Ridge and Schweiker, the retirement fund was left with greatly increased obligations based on the assumption that investments would provide double-digit returns forever. No governor nor legislature since has adequately dealt with PSERS funding, which is now grossly underfunded. SDoL is facing mandatory increases in contributions which has already added many millions of dollars to our budget every year, and if left uncorrected will add an unsustainable drain to our funds.
An unpleasant example of what can happen as a result of these issues is being played out right now in York: http://www.yorkdispatch.com/news/ci_20568144/york-city-schools-budget-sports-art-gym-kindergarten. More details about the situation in York are spelled out in videos here: http://www.youtube.com/watch?v=8CtTwKSzXbo and here: http://video.msnbc.msn.com/the-ed-show/47363980.
They voted him in; the chickens will come home to roost.
A first step in the right direction would be for Pennsylvania to tax pension income. Very few private industry workers are in pension plans and it’s hardly fair that these workers continue to be tax on working income beyond their 60’s when Pa pensioners are riding on their backs, tax free, after their mid 50’s.