For the last decade, PPS has drawn down from its Fund Balance (reserve funds accrued over previous decades) to paper over declining revenue and increasing costs. The Fund Balance had more than $130 million in 2015 and still had $86 million as of 2023. At the end of the upcoming budget cycle, PPS’s reserves will be less than a million dollars. These drawdowns from reserves have been especially dramatic recently as federal Covid-response funding ended yet spending continued to increase at PPS.
Since 2017, spending at PPS has increased from around $590 million to $712 million – a 21% increase; at the same time, student enrollment has decreased from 22,362 to 18,380 – an 18% decrease. As student enrollment has decreased by almost one-fifth, spending has increased by one-fifth. Much of that spending is due to generous teacher salaries and benefits. PPS full-time teachers make $10,000 more than the average Pennsylvania teacher; starting teachers make $6,000 more than the national average.
And what do students get for these generous salaries and overall spending? On a per-pupil basis, PPS spends significantly more than better-performing districts, but gets nowhere near the same results. For example, Fox Chapel Area, a close suburb of Pittsburgh, spends $4,000 less per-pupil than PPS and has some of the best results across Pennsylvania school districts.
Facing a systemic budget deficit, a lack of reserve funds to draw on, continued enrollment declines, and a teacher’s union contract that locks in high salaries, PPS Superintendent Dr. Wayne Walters has introduced a plan that may be voted on as soon as December 2024.
The presentation details the problems facing the city school system but offers vague solutions and attempts to scapegoat charter school families. PPS students who choose a public charter school cost the district about two-thirds ($19,398.75) of the district spending to the charter school, leaving almost $10,000 for PPS to use to educate remaining students. However, Dr. Walters frames this as “the District’s most substantial growing expenditure” even though teacher salaries and benefits continue to expand at least 3% a year despite declining enrollment.
The solutions on the table are to close school buildings and hire consultants. The presentation from Superintendent Walters anticipates some of the consultant’s advice including “proposals to retrofit older buildings with environmentally friendly technologies.” The report does not anticipate cost-savings from reducing bloated staffing levels or teacher contract changes. At stake is the independence of PPS, as the report states, “The District’s inability to meet its financial obligations may result in the transition into financial watch status and potential state receivership.”
A report from Public Source last year pointed out that, “19 PPS schools had over 60% of students performing below basic levels in math.” For theirs and all city residents’ sake, change is needed at Pittsburgh Public Schools.
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