Lack of fair funding could lead to receivership in Scranton, superintendent says

May 6—SOUTH ABINGTON TWP. — If the state continues to fund the Scranton School District unfairly, receivership may be unavoidable, the superintendent said Thursday.

At a news conference at Abington Heights High School, district leaders from throughout Lackawanna County called on state legislators to pass both charter school funding reform and to not only invest more in public education, but to distribute it fairly.

The impact may be greatest in Scranton, which Superintendent Melissa McTiernan described as being in "dire straits." Even though the district's finances have improved in the two years since the state placed it financial recovery, projections show a need for years of property tax hikes that leave little for salary increases, curriculum updates or facility upgrades.

Under receivership, the state could void all contracts and leave the school board with little power.

If the state placed all basic education funding through the fair funding formula, Scranton would receive about $4,000 more per student each year — or about $39 million.

"I'm responsible for 10,000 kids," McTiernan said. "I can't give them what they need, and I feel like I'm failing them."

Advocacy organization PA Schools Work and other statewide groups held simultaneous press conferences across the state Thursday.

Gov. Tom Wolf and public education advocates call the state's education funding system one of the worst in the country. Pennsylvania has the widest funding gap between wealthy and poor school districts of any state, with the wealthiest school districts spending 33% more on each student than the poorest districts.

The state's share of total district spending is 38%, which ranks the state 44th in the country. As a result of the lower state contribution, Pennsylvania school districts rely more on local property taxes to fund budgets.

Pennsylvania created a fair funding formula six years ago to distribute money in a way that reflects a district's needs, factoring in student enrollment, the needs of the student population and district wealth and capacity to raise local revenues. But that formula only applies to new investments the state makes in basic education funding. Wolf proposed putting all funding through the formula starting with the 2021-22 budget, which the Legislature must pass next month.

Putting all funding through the formula would cause more than half of the state's 500 districts to receive a lower allotment, so Wolf seeks another $1.15 billion so no school receives less next year. The proposal is funded through an increase in the personal income tax rate, which Republican legislators have said they will not support.

Superintendents also pushed for charter school reform, which the governor has also proposed.

School districts in Northeast Pennsylvania expect to pay an additional $36.2 million in charter school costs this academic year, as families sought alternative options because of the pandemic.

Superintendents cited lower proficiency and graduation rates for cyber charter schools.

"There is no accountability," Dunmore Superintendent John Marichak said. "We can't figure out why there are different rules for different people. ... Tell anyone you can, we need help."

Carbondale Area School Director David Osborne said rising charter school costs and a lack of special education funding increases have led to furloughs and little money left to negotiate a new teachers contract. About $1.9 million of the district's $22 million budget goes to charter schools.

State Reps. Bridget Kosierowski, D-114, Waverly Twp., and Mike Carroll, D-118, Avoca, pledged to continue to fight in Harrisburg.

The General Assembly violates the state constitution by not providing adequate funding, Carroll said.

"There needs to be a major change," he said. "We have a real challenge in Pennsylvania."

Contact the writer: shofius@timesshamrock.com; 570-348-9133; @hofiushallTT on Twitter.