State Sen. Jeff Piccola is due to retire in a few months from a long legislative career, but not before setting the stage for a possible third takeover of a Harrisburg entity.
Piccola is the primary sponsor of SB1450, which allow the state to assume control of a school district deemed “distressed.”
The bill, which spent much of last month in the Senate’s Education Committee, would set up an “Office of Financial Recovery” headed by a chief recovery officer, who would draft and implement a financial recovery plan. The officer would report directly to the state’s secretary of education.
If the school board refused to cooperate with the chief recovery officer, the state could appoint a receiver, who would directly run the district.
The bill potentially could apply to many school districts, but Harrisburg is one of the few districts in the state that could set off one of the triggers for a takeover, which include an inability to pay teachers on time, a request for an advance on state basic education funding and a default on a bond.
The Harrisburg school district is deeply in debt, with a budget deficit for the 2012-13 school year estimated at $12.9 million. The district currently is considering a number of unpleasant choices to close the gap, including possibly ending its kindergarten program. Athletics, band and some faculty cuts are also possible, as it is a tax increase.
The school budget is slated to be acted on by June 30.
In 2000, Piccola engineered another takeover of Harrisburg’s schools, which then were placed under the control of former Mayor Stephen Reed. The 10-year mandate expired in 2010, leaving the district with a debt load that is estimated to grow to more than $500 million by 2020.
Last year, Piccola also sponsored legislation that led to a takeover of the city government, which now is overseen by a state-appointed receiver.
The new schools legislation is similar to that bill, as it appoints one person to head a financial recovery office, which then would draft and implement a recovery plan for district.
