Categorized | Education, Pottsgrove Schools

State Suspends $3.2M In Ringing Rocks’ Reimbursement

POTTSTOWN PA – “The devil is in the details,” Pottsgrove School District Business Administrator David Nester regularly reminds its Board of School Directors. And as Nester has rummaged through details of last week’s state budget address by Gov. Tom Corbett, he told board members Tuesday (Feb. 14, 2012) he’s discovered a roughly $3.2 million devil.

Business Administrator David Nester works before Tuesday's board meeting at Pottsgrove Middle School

That’s how much money the state Department of Education promised, back in 2010, to partially compensate Pottsgrove for the $16 million debt it incurred in rebuilding and expanding Ringing Rocks Elementary School on Kauffman Road. The so-called PlanCon money hasn’t yet been paid by the state and now, under the Corbett budget unveiled Feb. 7, the potential exists it could stiff the district for that amount.

Nester announced the Education Department last year ran out of money for PlanCon, the lengthy and paperwork-filled process for planning and construction of public schools statewide. Corbett’s budget calls for a one-year moratorium on new PlanCon submissions, Nester said, and casts doubt upon the future of payments approved but not banked.

“I don’t know whether or not we’ll receive any compensation from the state for building Ringing Rocks,” he reported.

If the PlanCon cash falls through, district taxpayers might end up paying the $3.2 million, about 20 percent more of Ringing’s cost than they were told to anticipate. “It’d be a substantial amount to deal with,” Nester warned.

Worse yet, he added, there are indications the moratorium could be lengthened beyond a year, and perhaps indefinitely. Such a move probably would not affect Pottsgrove during the next few years. However, members of the Pottstown school board learned to their dismay – also Tuesday – that the moratorium will force them to re-think plans to close one of Pottstown’s five elementary schools and add classrooms on to others.

The Education Department officially takes the position that it has made no commitment for PlanCon payments until its money is actually delivered, according to Nester. He doesn’t think that argument can stand, and hints other districts with more owed than Pottsgrove probably would challenge such a contention in court, if it persists.

“We just have to wait and see how it shakes out,” he said after the meeting.

Nester also confirmed for the board earlier reports that Pottsgrove otherwise made out “as positively as we could have hoped” in preliminary estimates of state budget funding for the 2012-2013 school year. Under Corbett’s plan to consolidate four different, formula-based revenue streams into a single block grant, Pottsgrove could receive between $70,000 and $100,000 more in education and other subsidies than initially expected, Nester said.

Again, however, he warned all was not what it seemed. In future years, the grant structure abandons automatic funding increases tied to inflation or other rising costs. So if the district pays more for busing of either public or private students because fuel prices spike higher, or if it employs more teachers, it won’t necessarily win the extra state financial support it depended on in the past.

Related (to Ringing Rocks Elementary School renovations):

Related (to the Pottsgrove Board of School Directors’ Feb. 14 meeting):

Share

6 Responses to “State Suspends $3.2M In Ringing Rocks’ Reimbursement”

  1. E J Cox says:

    Put that lawyer to work and discover if “ex post facto” applies and that we can sue the state for failure to follow through.

    Changing the story after the fact is becoming the norm in government lately. It is time we start getting these people to own up to their comittments and stop this weasling out after the fact. We the taxpayers in the township are counting on this money to defray our school expenses. Had we no expectation of receiving these funds I dare say we would not have allowed the rebuild to occur and opted for a more modest approach to the problem.

    Sue them … Let this Governor know he’s out on a limb in this.

  2. Rollie Ciffo says:

    That’s what happens when you count on money from the Federal govt. And make no mistake about it, this is a chained event. Feds stiff PA. Oops, PA no longer has the money. PA stiffs schools in the PlanCon program. The guy at the bottom of the chain (PGSD) is always left holding the bag. PGSD should probably go after the Commonwealth legally … they knows they’ll have to pay some of school districts. This is probably their way to weed out some of the lesser claims. The squeaky wheel does indeed get the grease. I love all these weasels who love to blame the governor/commonwealth. Is PA supposed to pull $3.2M out of the air to pay for it when the feds pull the rug? The good news is that PGSD is pretty conservative financially … this is not a killer. There are other local SDs who play it fast and loose financially.

  3. PJ McGill says:

    Yep, the taxpayers get shafted again. The blame for this rests with Corbett, and the U.S. House who reneged on their commitments, to each state, to fund education.

    The School Board and Administration should have thought about including a contingency plan for What-If, but they did not.

    The problem is that this plan went forward during Rendell’s administration, who was/were fully committed to funding this. I agree, the PSD should go after this money, even if it requires a legal action.

Trackbacks/Pingbacks

  1. [...] State Suspends $3.2M In Ringing Rocks’ Reimbursement The Pottsgrove School District could get stiffed by the state Education Department to the tune of $3.2 million it was promised during 2010 for reimbursement of debt incurred to rebuild Ringing Rocks Elementary School. If that happens, district taxpayers could end up paying more. [...]

  2. [...] State Suspends $3.2M In Ringing Rocks’ Reimbursement [...]

  3. [...] State Suspends $3.2M In Ringing Rocks’ Reimbursement [...]


From Our Sponsors

From Our Sponsors