York Republican House Delegation Supports Measure to Help York City School District Maintain Solvency
7/6/2012
HARRISBURG - Members of the York County Republican House Delegation today applauded Gov. Tom Corbett’s signature of legislation to help York City School District maintain fiscal solvency.

House Bill 1307 is aimed at helping school districts avoid becoming financially distressed and assisting those school districts that have reached financial recovery status. It identifies three levels of financial distress, from the early stages to severe cases, like Chester Upland School District. York City School District is currently considered to be at the moderate stage.

At the moderate stage, the legislation allows the secretary of education to name a Chief Recovery Officer (CRO) to work with school districts to develop a financial recovery plan, which requires the approval of the school board and the secretary. The CRO will work with the school district to administer the financial recovery plan. If they are unable after 365 days to come to an agreement on financial recovery, the secretary could petition the York County Court of Common Pleas for receivership. If receivership is awarded, the secretary would assume all powers of the school board, except the ability to levy or raise taxes.

Members of the delegation, who include Reps. Keith Gillespie (R-Hellam), Seth Grove (R-Dover), Ron Miller
(R-Jacobus), Scott Perry (R-Dillsburg), Stan Saylor (R-Red Lion) and Will Tallman (R-Hanover), issued the following statement regarding the new law:

“The purpose of this law is to bring stakeholders together to ensure the financial success of distressed school districts, like York City School District. The law also provides an early warning system to help ensure school districts do not reach the point of being declared financially distressed. York City School District received an additional $7 million in the 2012-13 budget. This legislation gives the school access to interest-free loans, and other tools to help it improve its financial standing.

“We have learned that simply throwing money at school districts does not guarantee financial stabilization or recovery. Taxpayer dollars must be used appropriately and responsibly to benefit our children. This legislation further makes state and local government partners in the success of our public schools.”

York County House Republican Delegation
Contact: Scott Little
slittle@pahousegop.com
717.260.6137
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