Monday, March 11, 2013

Tech School Funding up for Debate

Tech school funding up for debate

Posted: Monday, March 11, 2013 5:00 pm | Updated: 8:00 pm, Mon Mar 11, 2013.
Talks have started about the complex funding formula that regulates how much the six sending districts pay for students to attend Bucks County Technical High School.Smaller districts in Lower Bucks County claim the formula is outdated and unfairly burdens them. But an official with a larger district said it pays its fair share.
Morrisville was withholding nearly $90,000 in payments in protest of the formula. That ultimately led to a vote a few months ago to stop new Morrisville Borough School District students from attending, but the vote failed.
Any such move to alter the Bucks County Technical High School Joint School Board's governing rules requires approval by the school boards of each sending district.
"It's the districts that don't meet their quotas that hurt us, because they're not paying for those full seats," BCTHS joint school board President John Doyle of the Bristol Borough School District said recently.
One of those districts is Neshaminy, which has been allotted 460 seats but currently sends only 275 students. Bristol is allotted 72 seats but sends 56 students this school year, according to tech school records.
Neshaminy school board President Ritchie Webb, a former board member for the tech school, said his district is paying "more than our fair share" even though it does not send as many students as it can. He also noted that the tech school probably couldn't handle as many students as Neshaminy is allotted.
A newly formed committee to try to resolve the dispute meets for the second time at 6:30 p.m. Tuesday at the technical school's administrative offices, 610 Wistar Road, in Fairless Hills.
The committee met for the first time March 4, and officials then said they will consider putting a sunset date on its governing rules in order to bring officials from the six public school systems to the table to revamp regulations on how to fund operations.
The joint board's governing rules were last updated in 2005, which officials said helped the smaller districts -- Bristol and Morrisville.
Four joint school board members — one each from Bristol Borough, Bristol Township, Bensalem and Morrisville — were at last week's meeting to jump start the conversation. Officials from Neshaminy and Pennsbury did not attend.
Doyle, of the Bristol Borough School District, said the current Articles of Agreement, which maintains the complex formula and other governing regulations, is outdated.
The formula assigns each district a certain fixed percentage of the school's fixed costs, and a variable payment that depends on the number of students each district sends to the technical school in any given year.
For 2012-13, Bristol Township will pay 35.5 percent of the $15 million in total variable costs. Neshaminy will pay 19.6 percent; Bensalem, 18.5 percent; Pennsbury, 18 percent; Bristol Borough, 4.6 percent; and Morrisville, 3.8 percent.
For the $4.6 million in fixed costs, the breakdown is as follows: Bristol Township, 28.4 percent; Neshaminy, 23.9 percent; Pennsbury, 23.9 percent; Bensalem, 18 percent; Bristol Borough, 3.7 percent; and Morrisville, 2.1 percent.
The tech school can hold up to 1,570 students, officials said. Enrollment is projected to increase from 1,400-plus students this year to more than 1,500 next year. According to figures from the tech school's administration, the total number of allotments for the entire school is 1,990, which is more than the building can hold.
If the board establishes a deadline as some officials suggested, and nothing is done by then, it is possible that the school wouldn't open, officials said. The tech school's lawyer is looking into this and other issues brought up at that meeting, they added.
After some discussion, the committee said it is looking to set a date to have the Articles of Agreement reconsidered by the joint school board with the goal of gaining unanimous approval by the school boards of the six sending districts before the end of June 2014.
Additionally, committee members showed an interest in exploring a concept in which a district would be charged for each seat it is allotted, regardless of whether or not the district fills those seats.
The committee might also explore a system by which districts can "sell" their unused seats to others that need extra slots.
Webb, of Neshaminy, said his district is not willing to revisit the formula if it's going to cost Neshaminy taxpayers any more than what they are currently paying.
Tech school Administrative Director Leon Poeske and business manager Sharon Rendeiro on Monday said that the tech school operates on a $21.7-million budget. The net share of the six sending districts is $18.2 million. Twenty-one percent of the budget is for fixed costs, which pays for things such as the administration and the school's facilities. Variable costs — everything else — account for 68 percent to 72 percent of the budget.
Wanda Kartal, a board member from the Morrisville School District, said she wants equal say on the tech board.
Currently, Neshaminy, Pennsbury, Bristol Township and Bensalem each have three members on the joint school board. The small borough districts, Morrisville and Bristol, each have one member, thus giving them less voice on matters.
In December, two board members from Pennsbury brought up measure to a vote to prevent new Morrisville students from attending the tech school in 2013-14 and beyond because Morrisville hadn't paid a $94,862 bill from fiscal year 2010-11. The motion failed 7-2. Eight votes are needed to pass any motion on the tech board.
In January, the joint school board agreed to withdraw a lawsuit against Morrisville if the small district made the payment. BCTHS received the payment last month, officials said.

9 comments:

Anonymous said...

What would happen if we just stopped paying? Oh, that's right. Been there, done that. Failure. Blew taxpayer money to pay lawyers for a lousy losing case. Thanks Bill, Marlys and the other SOC dimwits responsible for that debacle. What great financial stewards you were in your own minds.

Anonymous said...

Seems like no one is particularly happy with the way the tech school is funded. Not that the SOT approach was a rational solution to the problem, but just because they try to solve everything by cutting and blaming someone else, doesn't mean the problem doesn't exist.

Perhaps the tech school should also be forced to confront cost-cutting measures instead of always asking for more from he sending districts.

Jon said...

I agree that no one is particuarly happy with Tech funding formula. But some years a district loves it, other years the same district hates it.

I disagree that Tech hasn't confronted costs. Tech's budgets have tightened even as enrollment has increased. Therefore, I also disagree that Tech always asks for more from the sending districts.

In round numbers, Morrisville's share droppped from $900k to $600k this school year. Suddenly the funding formula's not so bad.

It all circles back to the formula, and that no one is particularly happy with it, except when they like it in years when their district's share drops.

I support making the case for a formula change to increase fairness and predictability. I hope decent reform can get enough votes from the sending districts to pass, but it's going to be tough and I wouldn't bet on it.

Anonymous said...

How about opening up the seats that other districts don't fill to districts that have candidates that want to attend but don't receive enough slots?

Sort of like tuitioning out? Come up with a rate and pay for the # of students attending?

I know of a number of students in Morrisville who didn't make it through the lottery, and this is the only option for an alternative education in Morrisville.

Anonymous said...

Good suggestion.That should definitely be on the table.

Jon said...

FYI, the last 4 Tech School budgets:

2009-10 = $22,400,000
2010-11 = $22,513,051
2011-12 = $21,534,573
2012-13 = $22,294,157

Anonymous said...

Don't confuse peoples' belief systems with facts!

Anonymous said...

Jon, thanks for that information. I am curious though, do you know how many children are being taught at the Tech school in each of those years?

I wonder how their budget per student compares to other districts.

Jon said...

I had to piece it together from a couple of places, but below is some historical Tech School enrollment data:

2005 = 1,397
2006 = 1,473
2007 = 1,480
2008 = 1,440
2009 = 1,418
2010 = 1,355

So it's generally in the 1,400 range, although the article says it may exceed 1,500 this coming year. In round numbers, a $22 million budget divided by 1,400 students = $15,714/student.