William Penn won the school funding trial. Yet it’s still plagued with financial problems
William Penn serves more than 4,500 students from the boroughs of Aldan, Colwyn, Darby, East Lansdowne, Landowne and Yeadon. More than half of the district’s students are classified as economically disadvantaged.
The district was one of six who successfully sued Pennsylvania, arguing the funding model was discriminatory and unconstitutional.
“The William Penn School District did the right thing by filing the charge against the state and I know it has been a long battle for us,” Fink said. “And our kids do deserve more funding.”
Pennsylvania has been providing underfunded school districts with millions of dollars — but the boost in funding couldn’t close the budget deficit. The district has ended three out of the past five years in the red.
In November, William Penn hired Public Financial Management to analyze its budgetary pressures.
During a January school board budget meeting, PFM revealed the district was facing a significant rise in expenditures stemming from a growth in benefits and salaries, charter school tuition costs and debt service payments.
“So much of our costs — staffing, health insurance — are all driven by unions and they’re fantastic and they’ve worked with us, but we really don’t have the wherewithal to properly do our job until we’re fully funded,” Hoff said in an interview.
These expenditures would equate to an operating loss of $9.2 million.
“For places like William Penn and many other urban school districts around the commonwealth, more funding comes in from the state. So that means that a bigger share of their revenue budget — the resources that they have on hand — they have no control over,” PFM Director Ian Tyson told WHYY News.
According to PFM, real estate taxes account for around 40% of William Penn’s revenues, compared to 50% from the state sources. Raising real estate taxes is one of the few ways the district can boost revenues.
To demonstrate the size of the deficit, PFM noted William Penn would theoretically have to raise taxes by 17.9%, or the state would have to provide an additional $10.4 million.
“William Penn has no options but to get through this, right? And we take our young people very seriously and our commitment to our community,” Hoff said. “So, that’s why we did the lawsuit in 2014 and that’s why we’ll continue, one foot after another, walking forward.”
Decision makers were left with the responsibility of taking a scalpel to an already chronically underfunded school district plagued with ailing infrastructure and raising real estate taxes once again on working-class families.
“It’s not like we have a lot of extra staff,” Becoats said in an interview prior to the most recent budget meeting. “So one of the things I want to do in this review is be prudent, but also make sure that we do not have a significant negative impact on the students or the schools because one of my main goals is to make sure that we continue to support the students and staff that we have in our building. So, it’s not a science getting to $9 million, it’s probably going to be an art.”