Home >  Nation & World >  Census

But more likely, Legislature will change rules

Tuesday, April 17, 2001

By Carmen J. Lee, Post-Gazette Education Writer

If state officials follow the letter of the Pennsylvania School Code, Pittsburgh's population dip would severely change life for the Pittsburgh Public Schools.

According to the way the law now reads, the district would have to lower its wage tax rate and borrow more money to pay its bills. And it would no longer be able to require employees to live in the district.

But the intent of the law is what matters, say city school officials. That's why they're certain the school code will be changed, as it was 20 years ago when another census recorded a large decline in the city's population.

"They want to keep everyone the same because it would be very messy if you don't," said Richard Fellers, the district's acting chief of operations.

State Department of Education officials were more tentative, however. Department spokesman Al Bowman said officials were waiting to receive official numbers from the U.S. Census Bureau and haven't decided what they will do.

Under the state school code, the city school district is the state's only First Class A district. Philadelphia is the state's only First Class district. All other districts are in classes Two through Four.

Currently, a First Class A district has to be located in a municipality with a population between 350,000 and 1.5 million.

But according to the 2000 census, the municipalities in the district, Pittsburgh and Mount Oliver, have a combined population of less than 339,000.

Technically, that drop would make Pittsburgh a Second Class district. Such a change would wreak havoc on its $441 million budget.

Although Second Class districts can levy occupation, business privilege and parking taxes, which the city district can't, they are limited to a 0.5 percent wage tax.

Pittsburgh school officials anticipate they will collect $82.3 million under the current 2 percent wage tax, and a classification change would mean a drop of about $62 million.

Second Class districts also are required to operate on a fiscal year that runs from July to June, Fellers added.

The city collects school district taxes along with its own on a calendar year basis, with the bulk of the money received in February and March. If the Pittsburgh school district had to change to a July-to-June fiscal year, it would have to issue a tax anticipation note and pay interest on the borrowed money, Fellers said. Currently, it is able to earn interest on the money it receives at the beginning of the year.

And for years, the district has required teachers and other employees to live in the city. The state school code prohibits districts in classes Two through Four from requiring employees to live in their districts.

Fellers relies on history in saying none of these consequences are likely to occur. Before 1980, a First Class A district had to have a population between 500,000 and 1.5 million.

When Pittsburgh's population dropped below 500,000 after the 1980 census, state officials amended the school code to lower the threshold to 350,000.

He believes a similar alteration will occur this time. So does Ron Cowell, a former state representative who served for years as the House education committee chairman.

Cowell, president of the Harrisburg-based Education Policy and Leadership Center, said short of using the names of Philadelphia and Pittsburgh in the school code, the intent of the law is for Philadelphia always to be the state's First Class district and Pittsburgh to be its First Class A district.

"Nobody is going to risk the turmoil or implications of Pittsburgh having its category changed," he said.

Chuck Kolling, the city district's government liaison, said he has contacted the state Department of Education's legislative office about amending the code.

Kolling said officials told him they would submit revisions in the law to the Legislature for approval, probably before the summer recess.