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Nazareth, Pa., United States

Wednesday, August 26, 2009

Why the State Budget Impasse Matters to Allentown School District

Allentown School Board President Bob Smith announced yesterday that the State budget impasse will likely force the school district to borrow money. "At the end of September, the Allentown School District will have to borrow money to start paying the regular bills. We have 'till the end of September. We have a good solid fund balance, but still, we get a lot of moey from the State. We have a lot of grant money. By the end of September, we'll have to start borrowing money. We are in the process of doing that. We are in the process of making $2.8 million in cuts. We are not laying off anyone and we are not raising taxes, but we will have to borrow money. These are just the facts of life."

Do you think Allentown School District is the only one that will be forced to borrow?

8 comments:

Anonymous said...

as i understand it, the ASD is not borrowing MORE money, they are issuing tax anticipation notes which only allow you to borrow against some of the state revenues which will be coming in . . . all within a year. so the net borrowing profile is not changing.

Anonymous said...

Bernie -

Perhaps the larger question is why is the state involved in school funding at all?

The state does not educate students - the school districts do. Why should state taxpayers be paying higher taxes - and funding an additional layer of bureaucracy - just so that the school districts can keep their tax rates artificially low?

Why not cut the state tax rates and raise the district taxes accordingly. Cutting out the middle-man (the state) would certainly result in some savings, and the districts couldn't be held hostage by state budget problems like we have now.

I suspect this won't happen since the teacher's union might object if teacher pay were tied the districts' (and taxpayers') ability to pay and not to some endless annual supplement of cash coming from the state.

Anonymous said...

"Perhaps the larger question is why is the state involved in school funding at all?"

B/c the state constitution says the following (Article III, Section 14):

"The General Assembly shall provide for the maintenance and support of a thorough and efficient system of public education to serve the needs of the Commonwealth."

We can argue about whether the system is efficient and thorough, but our constitution clearly requires the General Assembly to provide a system of public education... meaning they have to pay for it.

Bernie O'Hare said...

Anon 8:54,

You are correct. This is borrowing, but not for additional money.

President Obama said...

What's wrong with borrowing money?

Anonymous said...

You Go, Obama!

Wreck the damn country if you want.

Who cares if you QUADRUPLED the national debt in a MERE EIGHT MONTHS with your uncontrolled spending on earmarks and special interests.

We know you funneled money to your friends (like Brazilian company PETROBRAS, for whom George Soros is major stockholder, so they can DRILL FOR OIL) and we are STILL CAPTIVATED with your magnetic personality.

People who speak out against you are just jealous haters.

You Go, Obama.

Yes We Can. Hope and Change.

Anonymous said...

Racist haters really have a problem with Obama. Your comments are a sad comment on modern America.

Anonymous said...

People who anonymously use outrageous slander to silence speech should reflect on what motivates this sort of action and whether it is justifiable.

Scott Armstrong