PHILADELPHIA, PA, November 8, 2006 – Congressman Chaka Fattah (D-PA) issued the following statement today on finances of the School District of Philadelphia:

“The financial difficulty that has emerged in the School District of Philadelphia budget requires immediate action. However, it is not a crisis. And it must not result in debilitating cuts to successful programs that have our children achieving. 

“This issue can and should be solved by partners in good will – the same partners who faced genuinely severe crises in the recent past, then crafted the rescue and dramatic improvement in our Philadelphia schools. These partners – the state and the city, supported by political leadership and the school district – can do so again.

“First, some context. Without minimizing the $73.3 million shortfall, we must bear in mind that this is just 3.5 percent of the SDP’s current budget. The School Reform Commission, established under state law to run the city schools, is a partnership of the Commonwealth of Pennsylvania, which has a $26.1 billion budget, and the City of Philadelphia, with its $3.6 billion budget. Consequently, the deficit represents a tiny fraction of their combined resources.

“Much of the deficit, approximately $50 million, represents the five percent reserve fund. The absence of a reserve fund is significant, but not crucial. 

“The city is key to any solution, and I urge Mayor Street to continue the constructive role he has played in saving our schools. The Mayor has an admirable track record in advocating for our children and fighting to maintain Philadelphians’ voice in our own school system.

“Well aware of the direct connection between quality schools and increasing economic development and opportunity for all Philadelphians, Mayor Street has consistently made the link between academic achievement and safer, thriving neighborhoods. 

“Philadelphians can credit the Mayor for opposing the state’s initial takeover proposal while working with me and others to establish a unique city-state partnership through the School Reform Commission. We have also been partners on after-school programs and on the innovative CORE Philly Scholarship program.

"It was Mayor Street’s leadership that made possible the appointment of Paul Vallas as CEO of the Philadelphia schools – the same Paul Vallas who has just been named one of the nation’s 20 best leaders by U.S. News & World Report and Harvard University's Center for Public Leadership.

“The School Reform Commission and Vallas are grappling with hard choices this week.  

“A partial solution may be at hand. The city recently closed the books on FY 2006 with a $255 million surplus – which is $53 million more than anticipated. Councilman Darrell Clarke, supported by Councilwomen Jannie Blackwell and Blondell Reynolds Brown, advocates directing this “bonus” surplus toward the schools deficit. Governor Rendell, as majority partner in the School Reform Commission, has also pledged to help.

“The SDP choices must ensure that any budget adjustments do not imperil student achievement, programs such as all-day kindergarten, standardized curriculum, effective pupil-teacher ratios, a commitment to retaining students and increasing advancement to college.

“If a decision must be made to cut expenses, start with the private contractors such as Edison. They are paid a premium – a per-pupil allotment higher than the rest of the School District must live with – to achieve sub-par results. These private managers are an expensive experiment that has failed. Additionally, Vallas may also look to his own management ranks for budget trims. 

“In resolving its financial issues, the School District of Philadelphia must continue its momentum toward opportunity and achievement for all our young people. We are witnessing the most exciting and successful school reform effort taking place in any major city. The School District of Philadelphia has been one of the good news stories in American education. We cannot shift into reverse.”