POTTSTOWN SCHOOL DISTRICT

Paid Advertising Supplement | April 18, 2012

POTTSTOWN SCHOOL DISTRICTFinancial crisis coming —

This is an independent report about the Pottstown School District. It has not been endorsed by either the school board or the district administration

A PUBLICATION OF

2 / POTTSTOWN SCHOOL DISTRICT Financial Crisis Coming Paid Advertising Supplement | April 18, 2012

www.pottstowncitizens.org

Pottstown faces financial tsunami...After years of budget increases above the rate of

inflation, the Pottstown School District has hit the wall of financial reality. Starting two years ago, the district was forced to cut spending, including the first staff reductions in memory.

But those cuts were relatively easy compared to the upcoming budget crisis.

Within the next four years, Pottstown will face an annual shortfall of more than $5 million – even assuming a district-wide pay freeze.

Why? During the next 20 years, the district must make more than $50 million in bond payments, mostly for renovations and additions to the high school and middle school. Legally mandated

payments to the state retirement system will triple. And payments for health insurance premiums are likely to continue increasing well above the rate of inflation. Already, we know next year’s health insurance premiums will be $1 million more than they are this year.

The state is not likely to bail us out. Gov. Tom Corbett ran on a pledge not to raise taxes, and he shows every indication of keeping that pledge. That means we must increasingly operate with local resources. Unfortunately, our tax burden is already higher than 98 percent of the school districts in Pennsylvania.

We must rethink our spending practices.

BONDS – The Pottstown School District faces more than $50 million in bond payments during the next 20 years. Most of these payments relate to renovations and additions made 10 years ago to the middle school and high school. Last year, the district borrowed $10 million for renovations to its elementary schools.

PENSIONS - All retired school district employees are eligible for pensions, not just teachers. Both the school district and the state must triple payments into the state retirement system over the next five years.

HEALTH INSURANCE PREMIUMS - The Pottstown School District currently pays the lion’s share of health care premiums for its employees. Health insurance premiums will increase 18 percent next year and prescription premiums will increase 20 percent – more than $1 million over current spending.

Pottstown faces skyrocketing costs for health insurance premiums and pensions

The Pottstown School District still owes more than $35 million for renovations and additions to the Pottstown High School and Pottstown Middle School

This publication was researched and written by Thomas Hylton on behalf of Pottstown Citizens for Responsible Government. Hylton is a member of the Pottstown School Board. However, the ideas expressed are his alone and not those of the school board or administration. Details can be found on our website, www.pottstowncitizens.org

School Year Health Prescription percentage percentage increase increase

2008-2009 21% 14%2009-2010 26% 20%2010-2011 28% 17%2011-2012 17% 24%2012-2013 18% 20%

Current costs $4,660,317 $1,055,156

2012-2013 costs $5,499,174 $1,266,187

1-year increase $838,857 $211,031

Paid Advertising Supplement | April 18, 2012 POTTSTOWN SCHOOL DISTRICT Financial Crisis Coming / 3


from rising health costs, pension and bond payments

We must plan now to cut more than $5 million from our school district budget over the next four years.

HEALTH INSURANCE PREMIUMS

POTTSTOWN SCHOOL DISTRICT BOND PAYMENT SCHEDULE / PENSION PAYMENTS

FISCAL YEAR Bond * Bond * Bond Bond Bond Bond TOTAL PAYMENTS TO TOTAL Increased costs ending ANNUAL STATE PENSION PAYMENTS from current Series of 2000 Series of 2002 Series of 2012 Series A Series B Series 2011 BOND SYSTEM (3) school year Adjustable Rate Adjustable Rate (1) of 2010(1) of 2010(2) PAYMENTS

2011-2012 $90,691 $111,470 $869,306 $1,336,486 $227,150 $2,635,103 $2,024,100 $4,659,203 2012-2013 $90,691 $111,470 $886,483 $608,686 $228,450 $441,556 $2,367,336 $2,892,240 $5,259,576 $600,373 2013-2014 $90,691 $111,470 $456,350 $885,086 $224,650 $380,881 $2,149,128 $3,919,500 $6,068,628 $1,409,4252014-2015 $90,691 $111,470 $878,950 $1,340,886 $225,850 $380,781 $3,028,628 $4,972,500 $8,001,128 $3,341,9252015-2016 $90,691 $111,470 $877,950 $1,347,386 $221,950 $380,681 $3,030,128 $5,981,040 $9,011,168 $4,351,9652016-2017 $322,475 $139,710 $881,650 $1,343,386 $223,050 $380,581 $3,290,852 $6,144,840 $9,435,692 $4,776,4892017-2018 $323,440 $139,200 $879,950 $1,344,086 $224,050 $380,481 $3,291,207 $6,271,200 $9,562,407 $4,903,2042018-2019 $323,370 $138,600 $877,200 $1,339,536 $222,900 $380,331 $3,281,937 $6,442,020 $9,723,957 $5,064,7542019-2020 $1,171,300 $139,880 $1,339,236 $226,600 $380,181 $3,257,197 $6,561,360 $9,818,557 $5,159,354 2020-2021 $1,181,550 $140,040 $1,343,036 $380,031 $3,044,657 $6,495,840 $9,540,497 $4,881,294 2021-2022 $1,185,400 $140,080 $1,340,786 $379,881 $3,046,147 $6,453,720 $9,499,867 $4,840,664 2022-2023 $1,198,025 $1,341,255 $424,700 $2,963,980 $6,446,700 $9,499,867 $4,840,664 2023-2024 $1,209,075 $1,340,630 $422,887 $1,631,962 $6,442,020 $8,073,982 $3,414,779 2024-2025 $1,218,550 $1,337,442 $421,075 $2,977,067 $6,437,340 $9,414,407 $4,755,2042025-2026 $1,226,450 $1,337,512 $419,262 $2,983,224 $6,427,980 $9,411,204 $4,752,001 2026-2027 $1,237,775 $1,337,512 $412,450 $2,987,737 $6,416,280 $9,404,017 $4,744,814 2027-2028 $1,740,818 $1,740,818 $6,404,580 $8,145,398 $3,486,195 2028-2029 $2,990,975 $2,990,975 $6,395,220 $9,386,195 $4,726,992 2029-2030 $2,991,600 $2,991,600 $6,385,860 $9,377,460 $4,718,257 2030-2031 $1,740,818 $1,740,818 $6,381,180 $9,862,816 $5,203,613

This table shows the annual bond payments the Pottstown School District is legally obligated to pay. Most of the bond money was used to renovate and expand the high school and middle school in 1999-2002. Series 2011 is being used to fund elementary school renovations.

(1) Refinancing of earlier bonds for high school/middle school.

(2) This bond covers HVAC/lighting upgrades for energy efficiency.

(3) Column I shows anticipated payments the school district must make to the state Public School Employees’ Retirement System. It is based on projections supplied by PSERS as a percentage of total payroll. It assumes the district payroll will remain at $23.4 million annually.

*Note: Series of 2000 is an adjustable rate bond - Scheduled payments for 2011 were $322,685, actual payments were $90,691.

*Note: Series of 2002 is an adjustable rate bond - Scheduled payments for 2011 were $139,700, actual payments were $111,470.



Raising taxes is not an option...

Three years ago, the Pottstown Plaza Shopping Center, above, lost its two anchor stores, Giant Supermarkets and T.J. Maxx, to a new shopping center in West Pottsgrove. Meanwhile, the number of Pottstown homes for sale greatly exceeds the number of buyers. Pottstown’s tax base has declined in recent years and is expected to continue falling.

Year Pottstown’s rank of 500 school districts 2001-2002 72002-2003 82003-2004 62004-2005 132005-2006 102006-2007 152007-2008 112008-2009 162009-2010 7

School District State’s rank of 500 school districts Pottstown 7Pottsgrove 16Daniel Boone 62Perkiomen Valley 69Norristown Area 73Phoenixville Area 98Owen J. Roberts 131Spring-Ford 197Upper Perkiomen 233Boyertown Area 264

Estimated local tax effort for 2009-2010 as calculated by the Pennsylvania Department of Education

Pottstown historically has had among the highest tax burdens in Pennsylvania



as Pottstown’s tax base continues to decline

Pottstown’s shrinking tax base Year Total assessed valuation 2007 $838,545,347 2008 $829,017,802 2009 $826,475,792 2010 $817,728,017 2011 $816,340,164 2012 $812,526,000 2013* $808,197,170 2014* $804,156,185 * Projected by Management Partners

School District36.81 mills

Montgomery County3.152 mills

Borough10.21 mills

The Pottstown School District collects 75 percent of the real estate taxes in Pottstown.



For years, the Pottstown School District...

In 1977, the student population at Pottstown Senior High School peaked at 1,324 students. Today,

after the high school was enlarged 25 percent in 2001,

the student population is just 771 students.

Salaries and benefits for school district employees consume about two-thirds of the Pottstown School District budget.

Together with construction, the main reason for dramatically increased costs in recent decades has been an increase in personnel.

In the 1977-1978 school year, the district employed 423 people serving 4,012 students.

This year, the district employs 518 people serving 3,049 students. (And this is after equivalent staff reductions of nearly 50 full-time positions because of budget cuts in the last two years.)

Therefore as enrollment has decreased by 20 percent, the number of employees has increased by 20 percent. And 30 years ago, the school district operated the Pottstown Parks and Recreation Department. Today, the borough government funds and operates the Parks and Recreation Department.

1977-1978 employee/student ratio: 1 employee to 9.5 students

2011-2012 employee/student ratio: 1 employee to 5.9 students

As the number of employees has increased, the amount of space for each student has increased as well. Both the high school and the middle school were substantially enlarged 10 years ago, even though the student population is smaller today than it was in the late 1990s.

Although the elementary schools house 300 fewer students today than they did 15 years ago, we have added 23.5 modulars, the equivalent of a sixth elementary school.

For years, the Pottstown School District has been living beyond its means. Here’s the evidence:

Each year, the state Department of Education calculates the wealth of each Pennsylvania school district to determine its state subsidy. The wealthier the district, the less subsidy it receives from the state.

WEALTH

The state uses a combination of two factors to calculate wealth: the total assessed value of a district’s taxable property, and the total income of its residents. This is divided by the average number of students in the school district to determine its aid ratio.

Wealthy districts have a low aid ratio, and poor districts have a high one. Districts like Phoenixville, Upper and Lower Merion, and West Chester Area rank among the wealthiest in Pennsylvania. Reading, Chester-Upland in Delaware County, and Duquesne in Allegheny County are the state’s three poorest districts.

While Pottstown is far from wealthy, there are many districts with less wealth than Pottstown. Of 500 districts, Pottstown ranks 315th. That means 314 districts are wealthier and 185 districts are poorer.

SPENDING

If Pottstown’s per pupil spending was in line with its resources, our spending rank might be about the same: 315 of 500 districts. But our per-pupil spending rank is much higher. We rank 88th of 500 districts. In other words, our per-pupil spending is higher than 80 percent of the districts in Pennsylvania.

This is why our local tax effort is 7th highest in Pennsylvania, higher than 98 percent of the districts in the state. Taxes are perhaps the greatest impediment to the revitalization of Pottstown. Our rate of spending is simply unsustainable.

School District State rank of 500 school districtsPottstown 315Pottsgrove 206Daniel Boone 264Perkiomen Valley 99Norristown Area 82Phoenixville Area 7Owen J. Roberts 38Spring-Ford 44Upper Perkiomen 111Boyertown Area 129

School District State rank of 500 school districtsPottstown 88Pottsgrove 99Daniel Boone 356Perkiomen Valley 172Norristown Area 59Phoenixville Area 26Owen J. Roberts 110Spring-Ford 116Upper Perkiomen 190Boyertown Area 385

Estimated local wealth for 2011-2012 as calculated by the Pennsylvania Department of Education

Local spending for 2011-2012 as calculated by the Pennsylvania Department of Education



has been living beyond its meansLebanon serves more with less

It’s hard to believe, but the city of Lebanon School District is spending just $3.5 million more on education than Pottstown this year, even though Lebanon has 50 percent more students. Pottstown spends $15,500 per student, while Lebanon spends $10,800 per student.

Lebanon is one of the poorest school districts in Pennsylvania. It spends within the ability of the community to pay.

The Pennsylvania Department of Education publishes comprehensive databases on Pennsylvania school districts, including spending, wealth, and student achievement as measured by PSSA (Pennsylvania System of School Assessment) testing.

One thing is clear. There is no correlation between school spending and student achievement. There is no correlation between the local tax burden and student achievement.

There is a very high correlation, however, between the wealth of a district and student achievement. Although educators are loath to admit it, research shows schools have only a modest effect on the academic performance of their students. If Lebanon students struggle on PSSA tests, is it because Lebanon isn’t spending enough? Or is it because – like Reading, Allentown and Lancaster – more than half of Lebanon’s students are Hispanic (with language barriers), and three-quarters come from low-income families?

Do Hill School students achieve well because the school spends about $50,000 per boarding student, or because Hill students come from educated, affluent families?

Lebanon operates under the same state mandates as Pottstown. Yet it manages to spend 30 percent less per pupil than Pottstown. Even accounting for the higher cost of living in Montgomery County (about 15 percent), Pottstown could cut its budget by at least $10 million if it used Lebanon as a model for spending rather than wealthy Montgomery County districts.

Philadelphia •Harrisburg ★

• PittsburghPOTTSTOWN •

• LEBANON

POTTSTOWNEnrollment 3,097Percent low income students 64%Wealth rank of 500 districts 315Spending rank of 500 districts 88Taxation rank of 500 districts 7Spending per pupil $15,476

LEBANONEnrollment 4,586Percent low income students 72%Wealth rank of 500 districts 488Spending rank of 500 districts 468Taxation rank of 500 districts 116Spending per pupil $10,861

The Lebanon School District recently renovated its 1924 Houck Elementary School (photo bottom left) and 1918 Harding Elementary School. The district’s 1937 middle school is next to be renovated. The district has systematically renovated its schools while spending only two-thirds as much per pupil as Pottstown does.

The Pottstown School District spends 50 percent more annually on student transportation than Lebanon, even though Lebanon has 50 percent more students.



Increasingly, charter schools will impact...

The Renaissance Charter School in Phoenixville currently enrolls about 35 Pottstown students, who must find their own transportation because it is beyond the 10-mile busing limit. The Pottstown School District must provide busing to any private or charter schools within 10 miles of Pottstown.

Gov. Tom Corbett has said he supports vouchers and the expansion of charter schools in Pennsylvania. The Pottstown School District currently pays charter schools $8,955 for each Pottstown student enrolled in a regular education program, and $26,965 for every special education student enrolled. Pottstown pays the same whether the student is enrolled in a bricks-and-mortar charter school, like Renaissance Academy, or a cyber charter school. Currently, about 130 Pottstown students attend charter schools. If charter schools expand, as expected, they will very likely attract many more students from the Pottstown School District – all funded by Pottstown taxpayers.

The former St. Pius High School in Lower Pottsgrove, just outside Pottstown, was used last year by the Pottsgrove School District to house students while the Ringing Rocks Elementary School was renovated. The school is currently vacant. If it is turned into a charter school, it is likely to attract scores of students currently attending the Pottstown School District.

The Pennsylvania Virtual Charter School, below, headquartered in Norristown, is one of 13 cyber charter schools licensed by the Pennsylvania Department of Education. Students receive laptop computers and an internet connection to allow them to work at home. They participate in “virtual classrooms” with other cyber students on the internet and receive tutoring on the phone. More than 23,000 students are enrolled statewide. Nearly 100 Pottstown students are enrolled in cyber charter schools.

Paid Advertising Supplement | April 18, 2012 POTTSTOWN SCHOOL DISTRICT Financial Crisis Coming / 9 www.pottstowncitizens.org

Pottstown enrollment projectionsPottstown School District enrollments are expected to increase by more than 300

students in the next five years, according to projections by the Pennsylvania Department of Education. However, past experience shows these enrollment projections are often inaccurate.

Moreover, these projections do not take charter schools into account. If the 600-seat former St. Pius High School becomes a charter school, for example, Pottstown could face an enrollment decline rather than increased enrollments. Cyber schools may also drain more students from our schools.

The school district should therefore make its facilities plan as flexible as possible, to allow for either increasing or decreasing enrollments.

Middle School capacity 1030Current 6-8 enrollment 635Excess capacity 395

High School capacity 1162Current 9-12 enrollment 771Excess capacity 391

MIDDLE SCHOOL/HIGH SCHOOL STUDENT CAPACITY

YEAR K 1 2 3 4 5 6 7 8 9 10 11 12 TOTAL2011-2012 380 266 266 233 253 245 233 208 194 208 201 189 173 3049 PROJECTIONS2012-2013 346 326 303 275 230 239 232 224 186 230 183 148 182 31042013-2014 400 326 311 300 266 219 231 219 213 227 176 148 145 31812014-2015 360 376 311 308 290 254 212 218 208 260 174 142 145 32582015-2016 366 338 359 308 298 276 246 200 207 254 199 140 139 33302016-2017 373 344 323 356 298 284 267 232 190 252 194 161 137 3411

POTTSTOWN SCHOOL DISTRICT PROJECTED ENROLLMENT BY PENNSYLVANIA DEPARTMENT OF EDUCATION

When Pottstown Middle School was renovated in 2001, it was made much larger than necessary.

When Pottstown High School was renovated in 2002, it was made much larger than necessary.



Before making decisions...Financially sustainable

Pottstown has among the highest school tax rates in Pennsylvania. Spending has increased at triple the rate of inflation during the last 15 years. This is not sustainable. The district’s first priority must be living within its means.

It’s not about buildings

Private schools like Coventry Christian School and West-Mont Christian Academy provide an outstanding education in buildings that were closed and sold off by public school districts as “inadequate.”

Promote small learning communities

Students do best in small schools. As educational reformer Deborah Meier writes: “Every child is entitled to be in a school small enough so he or she can be known by name to every faculty member in the school and well known by at least a few of them.”

Build relationships

Ruby Payne, acclaimed expert on how schools can lift children out of poverty, says the key to achievement for students from poverty is building relationships. Payne suggests schools should be organized to allow teachers to stay with the same students for two or more years.

1912



articulate an educational philosophy —

Minimize transitions between buildings

The more years a student attends the same school, the better known he or she will become to the teachers and principal. Parents have more time to form a bond with the school. That’s why the Catholic school model works so well – students attend just two schools: Pre-K through 8, and 9 through 12.

Retain flexibility

The Pennsylvania Department of Education has forecast that Pottstown’s elementary school enrollment will increase during the next five years while its secondary enrollment remains stable. However, if a charter school opens we could see declining enrollments. We need to retain flexibility.

Maximize community resources

Our high school and middle school are both oversized and can accommodate far more students than they do today. To keep costs under control, we must make better use of these buildings. We must also make maximum use of other potential educational space, such as our church classrooms for pre-school, the public library, and the Montgomery County Community College.

Put schools close to children and families

Small neighborhood schools allow children to walk to school, which helps young people develop healthy habits and enjoy fresh air. It gives them freedom and a sense of responsibility. Nearby schools make it easier for families to participate in school life.



ST PETER’SLUTHERAN

BARTHELEMENTARY

MIDDLESCHOOL

HIGHSCHOOL

LINCOLNELEMENTARY FIRST

PRESBYTERIAN

FRANKLINELEMENTARY

MERCYAND TRUTH

EDGEWOODELEMENTARY

RUPERTELEMENTARY

WYNDCROFT

HILLSCHOOL

ST PAUL’SUCC

COMMUNITYCOLLEGE

GALLERYART SCHOOL

FIRSTMETHODIST

FIRSTBRETHREN

FIRSTBAPTIST

YMCA

YWCA

SECONDBAPTIST

PUBLICLIBRARY

RIVERFRONTPARK

MEMORIALPARK

EMMANUELLUTHERAN

ST JAMESLUTHERAN

ST JOHN’SUCC

ST ALOYSIUS

INVICTUS

TRI PAC

The community as a schoolPottstown has an asset few school districts can

match: an array of educational resources within close proximity of its families and students.

Pottstown has a community college, a nature center along the Schuylkill River, two performing arts centers, a downtown arts school, and a public library that is open evenings and Saturdays. It has a score of churches with classrooms ideal for pre-school education.

We have more than 100 miles of sidewalks that make it easy for students to walk to school and everywhere else. That’s vitally important in a world where two-thirds of adults are overweight and childhood obesity has tripled in the last generation. In an era of diminished resources, we need to expand our partnerships with our non-profits to increase educational opportunities while lowering our costs.

Pottstown High School students can already take courses for credit at Montgomery County Community College’s Pottstown campus. But some school districts are piloting a program nationwide where high school students can skip their last two years of school and go right into a community college classroom. We need to explore similar opportunities.

The Schuylkill River Heritage Center provides all grade levels with a unique opportunity for nature studies.

The Tri-County Performing Arts Center in downtown Pottstown hopes to partner with the Pottstown School District to produce, perform, and promote musicals.



ST PETER’SLUTHERAN

BARTHELEMENTARY

MIDDLESCHOOL

HIGHSCHOOL

LINCOLNELEMENTARY FIRST

PRESBYTERIAN

FRANKLINELEMENTARY

MERCYAND TRUTH

EDGEWOODELEMENTARY

RUPERTELEMENTARY

WYNDCROFT

HILLSCHOOL

ST PAUL’SUCC

COMMUNITYCOLLEGE

GALLERYART SCHOOL

FIRSTMETHODIST

FIRSTBRETHREN

FIRSTBAPTIST

YMCA

YWCA

SECONDBAPTIST

PUBLICLIBRARY

RIVERFRONTPARK

MEMORIALPARK

EMMANUELLUTHERAN

ST JAMESLUTHERAN

ST JOHN’SUCC

ST ALOYSIUS

INVICTUS

TRI PAC

Rupert Elementary School students take a break during the school day to walk around the surrounding neighborhood with their teachers to get some fresh air and healthy exercise. Most suburban schools have no place to walk.

For students, the Pottstown Regional Public Library

is as easy to reach as the middle school and high

school. It’s open evenings and Saturdays, and it offers a wealth of materials students

can access after they enter the adult world. Someday,

in a town as small as Pottstown, the public library may replace the high school and middle school libraries.



Promote more walking, less busing...

This year, the Pottstown School District is spending $1.8 million on student transportation. This is an enormous sum for a five-square-mile district with 3,050 students. For example, the Lebanon School District spends less than half as much on busing, per pupil, as Pottstown.

There is no educational benefit to busing. Rather, busing encourages childhood obesity, traffic congestion, and air pollution. The more we can downsize our transportation budget, the better.

The surgeon general recommends children and young people need one hour of moderate exercise every day. They could get most of that walking to and from school. Moreover, Pottstown’s 19 crossing guards do far more than guide kids across intersections. They serve as eyes on the street and make Pottstown safer for everyone. They give the elderly and stay-at-home parents needed income and a vital role in the community.

They are a friendly face for our children every day and give them a sense of safety and security.

Walking is the most beneficial exercise there is. Pottstown has an extensive athletic program, but very little of it will carry over into a student’s adult life. How many students will be playing football, baseball or lacrosse once they leave school? But walking is a healthy habit that will serve our students throughout their lives.



and make better use of existing facilitiesLast year, a Task Force appointed by administrators and

former school board president Rick Huss urged the school board to spend $34 million to enlarge three Pottstown elementary schools and close two others.

Unaffordable recommendation

The recommendation was unaffordable. Instead, the school board approved a $15 million plan to retain all five elementary schools and avoid any new construction. The proposed renovations would include new energy-efficient heating and cooling systems, new energy-efficient light fixtures, ceilings, floors, elevators and windows at Edgewood and Rupert.

After planning began, the district architects suggested the district could perform more work at less cost to local taxpayers by going through the state PlanCon process. Although $6.7 million worth of improvements would be added to the now-$21.7 million project, the state would reimburse Pottstown for nearly $11 million, with a local share of $10.7 million.

As planning continued, the district administration recommended closing the Edgewood Elementary School and building new classrooms at the other four schools to compensate for the lost space. Although a four-school plan with newly constructed classrooms would cost more -- $26 million -- than simply renovating Edgewood, the administration said closing a school would save more than $400,000 annually in operating costs.

The board approved that plan, but Gov. Corbett’s new budget calls for a freeze on all new PlanCon projects. At this point, even if the district avoids building any new classrooms, the four-school renovation plan will cost $18.2 million – and it might have to be paid solely by local taxpayers.

No New Construction

Even is PlanCon is retained, it would be irresponsible to enlarge any of our schools. With a looming annual deficit of more than $5 million, the district must make full use of the excess capacity at the high school and middle school and more efficient use of existing space at our elementary schools.

There is enough room at the Pottstown Middle School to move the Edgewood School to the first floor and even expand it to become Pottstown’s largest elementary school, housing 450 students or more. There is room to tuck six modular classrooms behind the middle school, where they would be hidden from the street and the stadium. The modulars could provide flex space as needed.

The high school has enough excess capacity to house the district’s administration offices and, if enrollment increases make it necessary, the eighth grade.

SCHOOL BARTH FRANKLIN LINCOLN RUPERT TOTALSLow flow plumbing fixtures $40,150 $35,200 $52,800 $25,850 $154,000 New heating and cooling system $1,133,243 $988,280 $986,834 $984,091 $4,092,448 Control system upgrade $200,000 $200,000 $200,000 $200,000 $800,000 New domestic water heating system $76,830 $67,002 $66,904 $66,718 $277,454 Electrical & power distribution upgrades $155,056 $134,004 $136,764 $107,700 $533,524 T-8 recessed and emergency battery packs Repair low voltage system wiring $38,764 $33,501 $34,191 $26,925 $133,381 Power upgrades for HVAC system $77,528 $67,002 $68,382 $53,850 $266,762 Lighting control and switching Classroom projector additions/upgrades $77,528 $67,002 $68,382 $53,850 $266,762 New floor tile & base $124,849 $108,878 $108,719 $108,417 $450,863 New ceilings $115,245 $100,503 $100,356 $100,077 $416,181 Asbestos abatement $130,000 $127,000 $121,000 $112,000 $470,000 Misc. wall repair $30,000 $30,000 $30,000 $30,000 $120,000 Elevators $150,000 $200,000 $200,000 $150,000 $700,000 Windows $239,800 $239,800 Roof replacement $234,916 $234,916 Parapet repointing $125,253 $125,253 Full brick repointing and cleaning $367,747 $367,747 Casework (exterior wall shelves) $90,000 $90,000 $90,000 $70,000 $340,000 Painting $109,483 $95,478 $95,338 $95,073 $395,372 Whiteboards and tackboards $50,000 $50,000 $50,000 $150,000

TOTAL CONSTRUCTION COSTS $2,676,110 $2,513,542 $2,530,154 $3,362,380 $10,954,752 CONSTRUCTION SOFT COSTS $246,600 $232,435 $233,889 $306,708 $1,016,041 TOTAL - ORIGINAL SCOPE OF WORK $11,970,793

Full brick repointing and cleaning, roof work $50,000 $50,000 $50,000 $85,424 Door replacement $60,000 $50,000 $50,000 $50,000 Full casework replacement $163,000 $88,000 $119,000 $95,000 Additional branch wiring and outlets $70,000 $70,000 $70,000 $70,000 ADA toilet/plumbing/finish upgrade $60,000 $60,000 $60,000 $60,000 Basement water remediation allowance $75,000 Paving and misc. ADA site allowance $243,000 $125,000 $130,000 $90,000 Interior security vestibules $72,500 $72,500 $72,500 $72,500 Emergency generators $17,800 $17,800 $17,800 $17,800 New light fixtures, upgrades $212,051 $184,926 $184,655 $184,142 Lighting control and switching $29,964 $26,131 $26,093 $26,020

SUBTOTAL CONSTRUCTION COSTS - ADD-ONS $1,027,231 $781,575 $819,050 $867,180 $3,495,036 SUBTOTAL - CONSTRUCTION SOFT COSTS $89,883 $120,347 $123,000 $150,734 $529,608 TOTAL-- ADD-ONS $1,206,996 $1,022,268 $1,065,051 $1,168,648 $4,554,251

Soft costs - architectural $1,423,952 New furniture $60,000 $60,000 $60,000 $60,000 $240,000

TOTAL -- ORIGINAL SCOPE OF WORK AND ADD-ONS $18,188,996

ELEMENTARY SCHOOL COST SUMMARY

The modulars at Rupert, which have blighted the appearance of the school for 15 years, are no longer needed and should be tucked behind the middle school building, where they will be virtually invisible from the street, the stadium, and the rest of the middle school/high school complex.



Elizabeth BarthElementary School

LincolnElementary School

PottstownMiddle School

PottstownHigh School

FranklinElementary School

EdgewoodElementary School

RupertElementary School

Our elementary school attendance boundaries are outdated...

In the 1960s, when Pottstown’s population reached its peak, the Pottstown School District enrolled more than 5,000 students.

From 1970 to 1980, the district’s enrollment declined, and the district had far more space than it needed. In 1978, the district closed an intermediate school for grades 6 and 7 at Chestnut and Penn

streets. The building was sold to Emmanuel Lutheran Church and later demolished

In 1980, in order to promote racial balance among its elementary schools, the district closed the Jefferson Elementary School at Beech and Warren streets and divided its attendance area among the five remaining schools.

These boundaries, which remain today, are outdated. When Jefferson was closed, about 23 percent of the district’s students were black. Today, more than half our students are minorities, and black families are assimilated through the community

Busing for racial balance is no longer needed.

Current Boundaries



and require far more busing than is necessary —Let’s assume we redrew district boundaries to

put as many children as possible within a mile of their assigned elementary school. We could do this without changing the size of any school.

The only children who are more than a mile from an elementary school are those who live in central Pottstown south of High Street. They are currently bused to Edgewood.

NeighborhoodBoundaries

The only elementary school which does not have enough walkers within a mile of the school for full enrollment is Barth. Barth has room for about 400 students, but it only has 184 students within walking distance.

Therefore, by changing the boundaries and reassigning students living south of High Street in

central Pottstown to Barth, we could reduce busing by more than half, and allow more students to attend the school closest to their home.

Depending on how many special education students would need to be bused, we could keep all our schools the same size and reduce the number of students being bused from about 600 to about 250.

Elizabeth BarthElementary School

LincolnElementary School

Middle School /Elementary School

FranklinElementary School

RupertElementary School



Middle School building is ideal for two schools...The Pottstown Middle School has far more space

than it needs to house the district’s sixth, seventh and eighth grade students. These students can easily be accommodated on the second and third floors of the building.

The first floor of the middle school could provide an ideal space for a new elementary school to replace the Edgewood Elementary School, which is being closed to cut costs.

By moving the six modular classrooms from Rupert Elementary School, where they are not being used, to the back of the middle school, we could increase the capacity of the elementary school if needed. The reconfigured middle school building could easily accommodate 450 elementary school students.

The back parking lot of the middle school is virtually “invisible” from Franklin Street, the football stadium, and the high school, so the modulars would not detract from the appearance of the school campus.

There would be no reason for middle school students to enter the elementary school portion of the building.

The only time the elementary school students would enter the middle school portion of the building – for physical education and library – they would be escorted by teachers.

Because the middle school day begins at 8 a.m. and the elementary schools open at 9 a.m., the middle school students would be in school well

before any elementary school students would arrive in the morning.

Likewise, because the middle school dismisses an hour before the elementary schools, the middle school students would be gone before the elementary school would dismiss.

The additional school would not increase operating costs, because it is located in an existing building that is already heated, cooled, and maintained.

Because the middle school is located immediately north of Pottstown’s most densely populated neighborhoods, it would place many Pottstown children closer to their assigned school than they are now.

7:30 AM Students start to arrive at Pottstown Middle School. All students must be in the building by 7:45 AM.

8:30 A.M. Elementary school students begin to arrive for school. All Middle School students have already been in the building for 45 minutes.

Likewise, the Middle School students are dismissed an hour BEFORE the elementary school students are dismissed.



first floor: elementary school to replace Edgewood, second & third floors: middle school for 6th, 7th & 8th graders

An elementary school could be placed on the first of Pottstown Middle School. Students would be completely separated from middle school students and enter and leave the school an hour apart from each other.

If an elementary school was placed on the first floor of Pottstown Middle School, redistricting would place the vast majority of Pottstown students within walking distance of their assigned school. Periodic redistricting could assure maximum use of each of Pottstown’s elementary schools.

3 MODULAR UNITS(6 CLASS ROOMS)

PLAYGROUND

STUDENTS ENTERSIDE OF BUILDINGFROM FRANKLIN STREET

CAR LINE ALONG FRANKLIN STREET

ELEMENTARY SCHOOL

ENTRY DOOR PLAYGROUND



Two smaller schools in middle school building...MIDDLE SCHOOL

With a few modifications, there is ample room to accommodate all Pottstown Middle School students on the second and third floor of the middle school building.

Middle school students are organized into “teams,” which in turn are divided into sections. Each section has anywhere from 20 to 28 students who stay together as one class as they move from room to room during the day for language arts, social studies, math, and science.

The maximum number of sections needed for each grade level is 10. Therefore, we need a maximum of 30 classrooms for three grade levels: sixth, seventh and eighth. We also need rooms for special education, in-school suspension, life skills, and alternative education.

All these rooms can be provided on the second and third floor of the middle school building, provided the current library is divided into four classrooms and a special education room. The library can be moved to the large group instruction room, which is currently underutilized.

One objective to promote order in the school is to place all the classrooms for each team in close proximity, so students stay in the same section of the building all day, except for specials like art, music, gym, and cafeteria.

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Pottstown Middle School

The Reading School District’s new Millmont building consists of two schools. The first floor is a neighborhood elementary school for 270 students in grades K through 5. The second floor of the building is a magnet school for 400 sixth graders. Although the schools are separate, students share the gym, cafeteria, art and music rooms, and the nurse’s station.



will function much better than one huge school

There are many reasons why it would be better to place an elementary school on the first floor of the middle school building rather than move the fifth grade to the middle school. Among them:

Parents don’t want it

In March 2010, the first time moving the fifth grade to the middle school was suggested, the Federation of Pottstown Teachers surveyed parents for their reaction. Of the fourth grade parents who responded, 72 percent opposed moving the fifth grade to the middle school. The negative reaction from parents at other grade levels was even higher: 87 percent opposed moving the fifth grade to the middle school.

Special education costs

Meanwhile, the concept was evaluated by Pam Bateson, director of Pottstown’s special education program. She warned that moving the fifth grade to the middle school might result in unforeseen costs, including the hiring of four new employees.

Size

An enrollment of 600 to 700 students is a manageable size for a middle school. Increasing the enrollment to 1,000 students will make the school more difficult to control and may lead to increased

The first floor of the Pottstown Middle School building can easily be adapted for an elementary school that would be separate from the middle school on the second and third floors.

Starting time for Pottstown elementary schools is an hour later than the middle school, and the middle school lets out an hour before the elementary schools. There is no reason why elementary school students would ever come in contact with middle school students.

The only time middle school students need to be on the first floor of the building is for music, art, and cafeteria. These rooms can be separated from the rest of the first floor by double doors that can only be opened from the inside or with swipe cards issued to teachers.

The only reason elementary school students would need to be on the second floor is for library and gym, when they would be escorted by their teacher.

The elementary school car line would form along Franklin Street, as it does for middle school students, and elementary school students would have their own entrance to the building on the south side of the building off Franklin Street.

There is ample room for a playground south of the middle school building.

Keep fifth grade in elementary schoolsdiscipline problems. By placing a fully separated elementary school on the first floor, the middle school will remain the same size it is today.

Best environment for fifth graders

Students, particularly those from low income families, generally perform better in elementary schools than middle schools. That’s why many big city districts, like Pittsburgh, Harrisburg, and Philadelphia, have moved toward K-8 elementary schools. We can’t afford that, but we can avoid making the middle school larger than it is. Fifth graders are a much better “fit” in elementary schools than a middle school, especially one with 1,000 students.

Keeping Edgewood “family” together

Moving the Edgewood Elementary School to the middle school would allow the current faculty and principal to stay together even though the current Edgewood building will be closed.

Closer to students

Many students who live in the Bright Hope and Rupert areas are more than two miles walking distance from the middle school. That’s a long walk for a sixth grader, much less a fifth grader. It means

many more parents will end up driving their children to and from school – a needless hassle and expense.

On the other hand, the middle school has more elementary school students within easy walking distance than any other school.

Impact on elementary schools

With the fifth grade in the middle school, fourth graders will become the school safety patrols. There will be fewer older children walking to elementary school with the younger children.

Flexibility

The annual number of fifth graders is fixed. On the other hand, an elementary school enrollment can be increased or decreased as necessary. The first floor of the middle school can accommodate a small elementary school (280 students) like Edgewood, or it can be increased to accommodate up to 450 students, especially with modulars in the back parking lot. The modulars with six classrooms currently at Rupert can be moved to the back of the middle school, where they can’t be seen from Franklin Street, the football stadium, or the high school.

Middle/Elementary School

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We can’t cut $5 million from the budget...Pre-school education

The Pottstown School District operates two pre-school programs for 3- and 4-year-olds under the umbrella of the state-funded PEAK program (Pottstown Early Action for Kindergarten readiness). We can only afford one.

The original program for pre-schoolers, inaugurated by the Pottstown School District in 1989, accommodates 99 4-year-olds in half-day sessions at Pottstown’s five elementary schools.

In 2006, the Pottstown School District inaugurated its off-site PEAK program for at-risk 3 and 4-year-olds, serving more than 100 children in high-quality full-day pre-K programs at six community-based partner sites. Pottstown’s private, non-profit pre-K partners are:

A. Montgomery County Head Start

B. Montgomery Early Learning Center

C. Pottstown YMCA

D. KinderCare Learning Center

E. Warwick Child Care Center

F. Pottstown Area YWCA

A fall 2008 study conducted by Jeff Sparagana, Pottstown’s PEAK director, rated and matched 41 students who were not enrolled in either program together with students enrolled in the Pottstown School District program and the PEAK program.

The study found PEAK children were slightly more prepared for kindergarten than children in the Pottstown School District program.

With substantially reduced funding, the district can no longer afford to operate a pre-K program in our elementary schools. Pre-school education is vitally important, but it must be carried out by the district’s non-profit partners. In addition to current locations, there are many churches in Pottstown with attractive classrooms that can be used for pre-school programs.

Make better use of existing space

Pottstown can barely afford to make necessary replacements to the heating and cooling systems in our elementary schools. We certainly cannot afford new construction or additions to current schools. We can reduce the need for classroom space by eliminating 4-year-old kindergarten classes, consolidating art and music in one room per elementary school, and making more efficient use of special education spaces. In addition, we should relocate Edgewood to the middle school, where there is space to create an elementary school with up to 450 students if needed.

If it is cost-effective, the administration building can be closed and administrative offices can be relocated to the high school. If enrollments increase, there is also room at the high school for the eighth grade if necessary.

Reduce staff

Staff reduction is painful. But two-thirds of the district’s budget goes for salaries and benefits. We cannot cut millions of dollars from our budget without reducing staff. We should plan now for the staff reductions we know will be necessary in the coming years, both for the district’s benefit and in fairness to our employees.

Twenty years ago, when we had the same enrollment we have today, we employed 18 aides. Today we employ 79 aides (and that’s after staff reductions in the last two years). Suppose we lay off the 60 aides we didn’t employ 20 years ago. Each aide costs the district roughly $40,000 in salary and benefits, for an annual savings of $2.4 million – still less than half the amount we need to cut.

Not only will we need to reduce the number of aides, we will need to reduce administrative staff and specialists. Regular classroom teachers should be laid off only as a last resort.

Terms of employment

It almost goes without saying we need a wage freeze for all employees. But if the teachers go without a contract, effectively freezing wages, the district is still legally obligated to pay all health insurance premium increases.

If this district wants to keep the staff it currently employs, we will not only require pay cuts, we will need employees to pay a much higher percentage of their health insurance premiums. If the teachers’ union will not agree to cost reductions, we will need to reduce the teaching staff as well as the non-professional staff.

Special education

Pottstown spends a much higher percentage of its budget on special education than the vast majority of other school districts, even those with a high percentage of low income students. (See accompanying chart). Pottstown administrators need to figure out why this is so and find ways to lower costs.

One exorbitant expense is special schools. Last year, more than 100 students were bused to special private schools throughout the region at a cost of $2.8 million for tuition (not including the cost of transportation). We should keep as many students in district facilities as possible.

State mandatesThere is no question that many state mandates inhibit, rather than encourage, the intelligent and efficient operation of our schools. Among mandates that should be repealed are:• Prevailing wage laws that drive up the cost of school construction.• The prohibition of teacher furloughs for economic reasons.• Teacher sabbaticals with half-pay at seven-year intervals.• Pay premiums for master’s degrees and other credits that may be irrelevant to

teacher performance.

Spend less, get more?

The history of American enterprise has been ever-increasing productivity, improving products and services while constantly reducing costs. The Pottstown School District can no longer afford the status quo. Even with $5 million in budget cuts, Pottstown citizens will be spending an enormous amount of money on education. We must do better with the resources we have.



without change and sacrificeSalary premiums

We also need to reassess the salary schedule. Currently, we pay teachers a premium for a master’s degree and other graduate credits. This should end. There is no evidence a master’s degree makes better teachers.

However, the district would benefit if teachers had dual certification – with special education being the second certification. That would provide the district with more flexibility in grouping students and lowering special education costs. That’s worth a pay premium.

The district would also benefit if more of its teachers lived in Pottstown. Currently, only 15 percent of our professional staff lives in the district. Likewise, no central staff administrators and only one of seven principals live in Pottstown. Teachers who live in Pottstown are a much greater asset to the community. They not only pay taxes that support our schools and borough, they interact daily with other residents. Because they have made a much greater investment in our community, financially and emotionally, they should be paid more.

Reevaluate block scheduling at the high school

In the mid 1990s, the high school moved to block scheduling. Each day, teachers have three 85-minute classes and an 85-minute planning period. Considering some teachers earn more than $100,000 in salary and benefits, we have to explore if there is a more efficient way to use precious teacher time.

Transportation

There is no educational benefit to busing. This is one place the district can cut costs and improve the community’s quality of life at the same time. The more students walk, the more they improve their physical and mental health. We should aim to cut our transportation budget in half over the next five years.

Special education costs as a percentage of combined regular education and special education budgets

School District Percentage Percentage special low income education costs students

Pottstown 38% 64%Pottsgrove 29% 28%Owen J. Roberts 29% 11%Norristown 31% 69%Lebanon 22% 72%Reading 23% 91%Allentown 26% 88%Philadelphia 21% 80%

Points to consider —The Pottstown School District has among the highest tax burdens in Pennsylvania – we are seventh of 500 districts in taxation. Within four years, Pottstown will face a budget shortfall of more than $5 million.

With declining property values, we can no longer afford to raise taxes. We must cut costs.

Both Pottstown High School and Pottstown Middle School, which were extensively renovated and enlarged a decade ago, are well below their enrollment capacity. The district cannot afford to build additions to its elementary schools – we must use the excess capacity at the high school and middle school.

Pottstown Middle School can house the 6th, 7th and 8th graders on its upper two floors. The first floor should be used as an elementary school to replace the Edgewood School, which is being closed.

If Pottstown’s enrollments increase, there is room at the high school to house the eighth grade, freeing up space at the middle school. There is also room for the district’s administrative offices.

Pottstown has not redistricted its elementary schools for 30 years. Redistricting can place more students closer to their assigned elementary school and greatly reduce busing.

Two-thirds of school district spending goes to salaries and benefits. We need to plan now to reduce our staff and find more efficient ways to provide special education services, which cost far more in Pottstown than comparable districts.

Eighty percent of the districts in Pennsylvania spend less money, per pupil, than Pottstown. We must find better ways to educate our children, because we can no longer afford the status quo.



Documents

POTTSTOWN SCHOOL DISTRICT