Despite benefits, consolidations face opposition

Sunday, September 26, 200 • By EDWARD SIEGER • The Express-Times

In his 30 years with the Pennsylvania Department of Education, Ron Stainbrook often gave financially strapped school districts advice on how to run more effectively.

His department explored every facet of a district's budget to find solutions.

Merging with a neighboring district was always a possibility. But Stainbrook said his reports seldom mentioned such an option.

"Because quite frankly it seems to be a lost cause," said Stainbrook, who retired from the department over the summer.

While homeowners grumble and groan louder and louder about escalating property taxes as state lawmakers fail to craft meaningful property tax reform, at least one Pennsylvania legislator says it's time to consider trimming the administrative fat and consolidating the state's hundreds of school districts.

But school board associations in Pennsylvania and New Jersey say such a decision should be made only at the local level, and legislators should make mergers more financially attractive if states are serious about consolidation.

In a report issued last year, the Brookings Institution's Center on Urban and Metropolitan Policy argued that Pennsylvania's burdensome system of local government could undercut the state's economic competitiveness. The web of Pennsylvania's 2,633 counties, townships, boroughs and cities -- the third most of any state -- hinders planning among municipalities and adds to the cost of government, the report surmised.

Could the same be said for Pennsylvania's 501 school districts and New Jersey's 616 districts, dozens of which educate fewer than 1,000 students?

A formal study has never been done to determine how much could be saved statewide if districts were to merge, Stainbrook said.

"But if you look at salaries and benefits and do the simple math, it would be a great savings," he said.

Administrative costs a large part of burden

Collectively, Northampton County's eight district superintendents earn nearly $900,000 annually, and Lehigh County's nine district superintendents earn more than $1 million a year.

In New Jersey, Hunterdon County's 29 superintendents and chief school administrators earn nearly $3.4 million annually, while their 23 counterparts in Warren County earn a collective $2.64 million annually.

In terms of size, the Wilson Area and Easton Area school districts educate a combined 10,533 students in 14 schools. But the two districts together still don't surpass the Bethlehem Area School District's roughly 14,442 students in 22 schools.

In Northampton County's less densely populated Slate Belt, neighboring Pen Argyl and Bangor Area school districts' combined student population of about 5,477 barely surpasses Northampton Area School District's population of 5,472. The Bethlehem School District has twice the number of elementary schools, 16, than Pen Argyl and Bangor have elementary, middle and high schools.

Of New Jersey's 616 school districts, 23 districts don't even have a school and 171 districts are served by a single building.

Hunterdon County's Bloomsbury Borough district has one building with about 139 students in grades kindergarten through eighth. The Milford Boro district's single school educates about 127 students in grades kindergarten through eighth.

Separate pieces of legislation in 1963 and 1966 respectively reduced Pennsylvania's number of school districts to 742 and the current 501, eliminating a system in which each county had a superintendent and each district employed a supervising principal who held many of the same duties as a superintendent.

In many instances, once-strong industries that had bolstered communities and their school districts dwindled or disappeared, leaving populations decimated and districts too small to manage resources effectively, Stainbrook said.

"I think you had the same situation that frankly you have right now," he said. "Some schools are so small to provide a certain level of education."

As many as 60 Pennsylvania districts serve fewer than 1,000 students in grades kindergarten through 12th, Stainbrook said. It can be difficult for smaller districts to offer a wide range of courses because fewer teachers mean they must often hold multiple teaching certificates and such instructors are hard to find, he said.

"People would think districts should be small, but what they mean is schools should be small," Stainbrook said. "When districts are that small they tend not to be effective as they should be."

Stainbrook sees Maryland's system of county-based school districts or even districts based on Pennsylvania's 29 intermediate units as plausible ideas. Short of formal mergers, districts could at least begin sharing teachers or services such as three or four business managers serving a handful of smaller districts, he said.

"That would be a good start," Stainbrook said.

But economic differences, engrained district identities and athletics likely prevent mergers, and state lawmakers are probably reluctant to promote consolidation legislation "for fear of upsetting a lot of folks," Stainbrook said.

"Athletics probably plays a role, a larger role than I would like to think," Stainbrook said.

If the day comes when districts voluntarily approach the Department of Education about a merger, it's unlikely a sound proposal would be met with resistance.

"There is no doubt we would approve it," Stainbrook said. "We don't want to deal with 501 school districts."

Old complaints bedevil newly formed districts

Mary Kusler, a senior legislative specialist with the American Association of School Administrators, cautions against considering consolidations in a vacuum. Lawmakers and administrators can't make a general decision to consolidate schools just to save money, she said.

"A school is very much allied with its community," Kusler said. "When a community loses its school in New Jersey or Pennsylvania it loses a piece of its identity. If you talk to superintendents who have gone through a consolidation, one of the most difficult discussions is which mascot to keep."

In Maine, population decline prompted a few communities to voluntarily consider and ultimately choose to merge, she said. West Virginia moved to county-based school districts about 10 years ago, and complaints continue about the time students spend on buses, Kusler said.

Parents and officials question how much money was really saved considering transportation costs, she said.

A district of 10,000 students works well in some cases, but there's no research indicating that's an optimal figure, Kusler said.

"There's just no magic number as to what works," she said, adding any decision to merge should be made locally.

Consolidation would help poorer districts

Other ambitious educational initiatives proposed by Pennsylvania Gov. Ed Rendell have prevented state Rep. Jennifer Mann from formally proposing such a measure, but she agrees consolidation is an idea whose time has come because "501 school districts is more administration than we need."

"Pennsylvania has nearly 2,700 municipalities and 501 school districts," said Mann, D-Lehigh. "There has to be a better way to organize government."

Further consolidation could also do a lot for a struggling school district like Allentown which is contained entirely within city limits, Mann said. Residents often say they don't want to leave the city, but have concerns with the school district, she said.

The result is an exodus to the suburbs and regional school districts like Parkland, Mann said. If the state could convince districts like Parkland to merge with districts like Allentown, similar unions could go a long way in stabilizing cities and neighborhoods, she said.

Mann contends it may take financial incentives before wealthier districts would even consider such mergers and take on someone else's debt.

"Initially, we'd have to spend some money to essentially convince wealthier districts to buy in," she said.

Allentown School District, for instance, receives a higher ratio of state aid per student because of income levels, Mann said. If Parkland ever agreed to a merger, the state could temporarily fund the district at the same aid levels as Allentown until a unified district could take advantage of economies of scale, she said.

But the same potential hurdles cited by others are the same heard by Mann -- sports, rivalries and a loss of local control.

At the risk of slighting the hard work turned in by volunteer school board members across the state, Mann said, concerns over local control shouldn't be as large a concern as some think.

"State and federal mandates really take a lot of decisions out of their hands," she said. "The concept of local control is really almost a myth."

School boards group straddles the fence

The Pennsylvania School Boards Association has not taken a formal position on consolidation, although some areas of the state could probably benefit from such a move, said Timothy Allwein, assistant executive director for governmental and member relations.

Allwein doesn't think consolidation of school districts, however, is a popular idea in Pennsylvania where people "have a lot of loyalty to one's institutions."

"Somehow, policy makers in Harrisburg have to break down a desire to stay in a district (residents) have been in their entire life," he said. "Maybe it's because of our aging population, but citizens in Pennsylvania don't like to see institutions changed."

Since the last major consolidation, population loss has left some regions with 20 school districts to serve 60,000 students compared to 180,000 students 40 years ago, offering a good argument for another mandatory consolidation, Allwein said. The PSBA has not formally supported the idea, in part, because no type of incentive to merge has ever been proposed, he said.

Other potential hurdles include transportation issues and deciding which administrators would be hired for a new consolidated district, Allwein said. In creating one district of 20,000 students from a few districts of 5,000 students, the same amount of administration may be needed to handle special education and curriculum, he said.

Budgets are getting tighter, and PSBA fully supports collaboration such as purchasing supplies or sharing special education teachers, Allwein said. As for a loss of local control, he agrees the days of strong local control are behind.

"Let's say you have a district with four municipalities," he said. "What's the difference between having four versus eight? I guess the bottom line is how do you define local."

Perhaps the answer is to consolidate districts only in areas of the state where it makes the most sense, Allwein said. And with population dwindling in some regions, Allwein envisions some type of legislation in eight to 10 years that establishes benchmarks requiring some districts to merge.

In January, New Jersey Gov. James McGreevey asked the Department of Education to come up with ways to streamline administrative costs. One idea is to eliminate the state's 23 nonoperating school districts -- the districts which have no schools and send their students to other districts on a tuition basis.

"What the governor proposed made a good political sound bite, but it didn't play out in reality," said Frank Belluscio, spokesman for the New Jersey School Boards Association.

McGreevey mischaracterized nonoperating districts as "bureaucracies for their own purposes," Belluscio said. Such districts, including Hardwick Township and Glen Gardner, employ only a part-time clerk and are served by volunteer school boards, he said.

"They're not contributing to property tax increases," Belluscio said.

He argues that administrative costs "are not out of line" because New Jersey ranks 20th nationally in percentage of school funding spent on administration. Since 1989, administrative costs have increased .01 percent compared to a 27 percent increase in student spending and a 28 percent increase in teachers' salaries, Belluscio said.

"Resources are going to the classrooms," he said.

The problem is the state's failure to adequately fund its share of public education, Belluscio said, a similar complaint voiced by Pennsylvania administrators and lawmakers for years. New Jersey funds about 39 percent of districts' spending compared to the 50 percent national average, he said.

With more than 600 school districts, there's probably some room for regionalism, but lawmakers run the risk of increasing school costs by forcing consolidation, Belluscio said.

Mergers could eliminate some chief administrative positions, but force the addition of more midlevel administrators, he said. And if staff salaries are higher in one district than the other, chances are salaries in a unified school district would rise, Belluscio said.

Mergers could also result in less state aid if one district qualifies for aid while the other does not, he said.

"There's a 50/50 chance you could save some money," Belluscio said.

Ultimately, politics still stands in the way

A former state representative from Allegheny County, Ron Cowell agrees there is little political appetite for consolidating districts.

"Few things generate such an emotional outcry than consolidating districts," he said.

Cowell -- now president of the Educational Policy and Leadership Center in Harrisburg -- says the issue is worth examining because the high number of districts helps perpetuate what he calls "just about the worst school finance system in the country."

If a school district has shopping malls and a viable industrial center, the district will be wealthier and school property taxes are potentially less of burden on taxpayers, Cowell said. But a declining business center and no industry means a high millage rate generating little revenue, he said.

Locally, the Wilson Area School District -- with little industry in Williams Township and Wilson, West Easton and Glendon boroughs -- has the highest property tax rate in the county at 43.1 mills to support the county's second lowest budget at $24.9 million.

Along with drastically trimming the number of administrators, a county-based school system would allow districts to benefit from a county-wide tax base, Cowell said.

Cowell acknowledges it's difficult to say with certainty whether dramatically fewer school districts would mean dramatically lower costs, considering transportation costs associated with larger districts. But as small districts struggle to offer extra curricular and academic programs, a change may be inevitable.

"Sooner or later, I think we will have to make changes so there are a fewer number of school districts," Cowell said. "We don't have 501 economically and academically viable school districts. Some districts want to get married, but nobody wants to marry them."


Reporter Edward Sieger can be reached at 610-258-7171 or by e-mail at esieger@express-times.com.

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