Below is our testimony submitted on June 10, 2011 to the Philadelphia City Council on funding for the School District of Philadelphia:
Thank you for the opportunity to comment on the proposed revenue measures to deal with the funding cuts expected from Harrisburg this year.
The Greater Philadelphia Chamber of Commerce has long been an advocate for appropriate school funding levels. During the last few years, we have broken ranks with many of the Commonwealth’s business organizations and have supported the adequacy standards championed by former Governor Rendell. With the end of stimulus funding from Washington, we recognize that the levels of funding in the upcoming budget will be reduced and that changes will be expected from local school districts to deal with these shortfalls. Local governments will be asked to find efficiencies and programs will be changed or curtailed.
Philadelphia is not alone in dealing with this funding crisis. Neighboring municipalities are dealing with reduced funding as well.
In Chester Upland for example, the $92 million budget includes cuts to 40 percent of the district’s teaching force, 50 percent of its support staff, 18 percent of classroom support, and 13 percent of administrative staff, among other cuts.
Throughout the region, as of June 6, 2011, some 18 school districts have imposed some sort of pay freeze for the coming school year. Many of these same districts have been looking for ways to further reduce spending rather than increasing taxes during these troubling economic times. In short, most districts are attempting to reduce the amount of increased revenue expected from taxpayers.
We are pleased that the school district has agreed to work in coordination with the City to identify efficiencies and look for creative ways to extend funding for the most critical programs.
We applaud both the Mayor and Council for calling for more accountability by the school district on spending priorities, and were pleasantly surprised by the announcement that funding could be shifted from other programs in order to fund full day kindergarten. We are hopeful that other efficiencies may be identified prior to seeking additional tax revenue, including possible funds available to the superintendent to reposition in order to meet critical program needs for our students.
Last year, the Chamber reluctantly supported the request for a temporary increase in the real estate tax. That increase is impacting both commercial and residential taxpayers this year. Next year, we understand that Philadelphia will be moving to full value assessments on real estate which should eliminate the patchwork of conflicting values across neighborhoods and provide fair and comparable values across the city. This change will effect neighborhoods differently and will amount to another increase in real estate taxes for many. Given these two facts, we cannot support an increase in real estate taxes again this year.
Before supporting any new revenue measure, we must be sure that all possible avenues have been examined for savings. We are pleased that the school district is working with the Administration and Council in response to questions that have arisen during the budget hearings. The accountability agreement which was signed yesterday should bring transparency to the process and begin answering the many questions surrounding the school district’s finances. This unprecedented agreement will ease the tension that has often existed in Harrisburg on issues surrounding the funding of public education in Philadelphia.
Secretary Tomalis commented that the Commonwealth has never had this level of detailed information from the school district. That said, all sides should digest the information provided and see what other efficiencies can be gained prior to levying another tax on the residents and businesses of Philadelphia.
We recognize the budget situation that both Harrisburg and the City face this year. A prerequisite for discussion of local funding options must be a redoubling of the school districts efforts to reduce expenditures and increase efficiency of their operations. Only after demonstrating this resolve can we expect to receive favorable consideration in Harrisburg.
The Chamber stands ready to advocate in Harrisburg for restoration of funding for K-12 education to levels above those proposed in the Governor’s budget. We will work with both Council and the Administration to seek appropriate solutions to demonstrate that all local options have been considered.
Thank you for the opportunity to comment.
