1. Leadership Service Advocacy Dave Davare, Ph.D. Director of Research Services

2. © 2012 Pennsylvania School Boards Association 2 The South Central Assembly Summit June 13, 2012 Saving Cities and Schools

3. © 2012 Pennsylvania School Boards Association 3 Saving our Schools: Beyond the Great Recession Today is about addressing the future of the region…

4. © 2012 Pennsylvania School Boards Association 4 Saving our Schools: Beyond the Great Recession 6 issues face public education in the future

5. © 2012 Pennsylvania School Boards Association 5 Saving our Schools: Beyond the Great Recession 1.State funding 2.Property and other local taxes 3.Merger/Consolidation/Sharing 4.Distressed school districts 5.Alternatives: Vouchers/Charters 6.Mandates

6. © 2012 Pennsylvania School Boards Association 6 Saving our Schools: Beyond the Great Recession State-local funding: Inextricably linked

7. © 2012 Pennsylvania School Boards Association 7 State and local funding Source2009-10 Local – Non RE Tax12.3% 55.9% Local – RE Tax43.6% State35.5% Federal/ARRA7.3% Other misc. revenue1.3%

8. © 2012 Pennsylvania School Boards Association 8

9. 9 District spending Expenditure2009-10 State-wide Salary & benefits62.8% Supplies/Materials25.5% Other0.4% Debt service11.3%

10. © 2012 Pennsylvania School Boards Association 10 Salaries and benefits Expenditure2009-10 Instruction44.0% Non Inst. Admin *2.1% 17.8% Non Inst. All Other15.7% Other1.1% Total62.9% * Adjustment for principal salary from Admin to all other

11. © 2012 Pennsylvania School Boards Association 11 Merger/Consolidation/Sharing Merger – local choice, may not save money due to CBAs Consolidation – State imposed, ignores due diligence Sharing – Opportunity for cost control

12. © 2012 Pennsylvania School Boards Association 12 Merger/Consolidation/Sharing The devil is in the details of: –Merger –Consolidation –Sharing

13. © 2012 Pennsylvania School Boards Association 13 Vouchers/Choice Voucher and choice are spending mandates for SDs Districts not funded based on # of students Payment to charter/voucher based on # of students

14. © 2012 Pennsylvania School Boards Association 14 Vouchers/Choice Different payment from each district and not based on the charter’s cost In many cases does not draw enough students to save money

15. © 2012 Pennsylvania School Boards Association 15 Mandates Pensions Collective bargaining Prevailing wage Special education School nurse

16. © 2012 Pennsylvania School Boards Association The future Need to face the funding/tax relationship –Develop a reasonable funding formula –Address the property tax issue (including land- value tax authority) State needs to address unreasonable mandates such as prevailing wage District’s need to examine cyber options Alternatives to current process 16

17. © 2012 Pennsylvania School Boards Association 17 Questions

18. Leadership Service Advocacy (717) 506-2450 www.psba.org