SUND;\Y NEIl'S , LANt. \STER, PA. \ AUGUST 11, 2015 A5 What is driving cuts in curriculum at MT? • Superintendent says it's all about getting students ready for the future. Some parents not happy with changes aren't so sure. BY GIL SMART Staff Writer gsmart@lnpnews.com To hear Gene Freeman tell it, Manheim Township had no choice but to be on the cutting edge. With new state mandates coming down the pike, the district last year shook up its elementaryschool curriculum, making big cuts to art and music and physical education - and sparking an insurrection among parents who feel their kids' education is being shortchanged. That insurrection, parents have promised, will continue into the new school year. But Freeman, Manheim Township's superintendent, isn't daunted. He said the decision to spend more time on math and science is ulti- mately driven not just by a desire for high test scores, but the need to get kids ready to compete in the global economy. And even in a perfect world, where money isn't an issue, he said, Manheim Township might still have cut art and music and physical education. But money is an issue. It might be more of an issue at Manheim Township than elsewhere. Manheim Township faces the same fiscal woes bedeviling every district in the state. A huge spike in pension funding looms, special education costs have skyrocketed and the cost of health care has risen while state funding has remained flat. Assessment appeals have undercut the district's tax base, and cyber and charter school defections have cost students and money. Yet Manheim Township has other, unique fiscal concerns. It has one of the highest debt levels of any school district in Pennsylvania Ratings agency Moody's downgraded the district's bond Please see MANHEIMlWP., page A9 Continued from A1 Manheim Township is widely regarded as.the . wealthiest school district m the county, with the county's highest median household income and a tax base that keeps growing as development continues. As one school official at a nearby district said, "If there's any school district that should be able to afford art and music and a new focus on the' core rating last year. So in addition to an acad~mic restructuring, Manheim Township has also undergone what's been calle~ an "economic restructurmg. The question some parents have is: Did the latter trigger the former? Freeman and other curriculum, it's Township." district administrators insist Ithe answer is no. In the past, And yet Freeman - who some officials have acknowlearlier this year got a ralSe \ edged that staff reductions that made him the highestwere a factor in the academpaid superintendent in the ic changes. A cost-cutting county - looked down the early retirement deal led to road and saw trouble. 27 retirements at the end Health care costs were of 2011-2012 school year; soaring - up 37 per cent art and music teachers and last year alone, he said. Five librarians were reassigned to years ago, when he arrived fill teaching voids. at the district, Manheim But Freeman insists the Thwnship paid less than $2 academic changes, at least, million into the Public School are all about getting the kids Employees Retirement ready for the future, not savSystem. In 2018, that amount ingmoney. is projected to spike to $11 ''We have to separate million. what feels good versus what Most daunting were the is helping our children," he looming "Common Core" said, controversial though It standards, which will take maybe. effect in 2014-15 and reqUIre And there's more controstudents to pass exams in biversy coming up: The middle oIogy, English literature and school is next. algebra in order to graduate. The way Freeman saw Seeing trouble it the district wasn't going t~ meet those challenges by Most local districts have buttressing the status quo. trimmed or eliminated liSo district officials took an brary, arts, music and physiax to it. cal education, or scaled back Music and art instruction on electives and extracurwere hacked back. Gym ricular activities. Hundreds class time was slashed by a of staff positions have been third. Formal library instruc eliminated and districts have dipped into "rainy day" funds tional time was cut. Language arts and math class and raised fees, all the while imploring Harrisburg to deliver mor e ru time was expanded. The changes, enacted in June 2012, surprised many parents - and infuriated some. Parents began showing up in increasing numbers at school board meetings to complain. In June, a rally demanding that art and music instruction time be reinstated drew up to 75 people, local media reported. Parents have vowed to keep up the pressure. "All the other districts around here are under the same regulations we are, and they haven't cut as deeply," said Renee Heller, a Schaeffer Elementary School parent who helped found "Taking Root," a parents' group that sponsored the rally. Added Shelby Witmer, a Nitrauer Elementary parent: "They're really pushing that this is a test score thing, that this is a Common Core thing. But there's nothing in Common Core that says you have to reduce art and music to meet those goals." Hannah Bartges, president of the Manheim Township School Board, acknowledged that "every decision the board makes includes economic considerations, and of course it was discussed ... but our first consideration was to support the administration's decision to meet the needs of our students in math and reading." Freeman insists those needs, and not money, drove the curriculum changes. But other changes can be tied directly to what Moody's has called the district's "narrowing financial position." In April, athletic director Kevin Raquet was laid off and the district reassigned his duties to an assistant principal. Raquet, who served as AD for seven years, declined to speak at length about his termination. But he did say he was told the decision was part of the district's "economic restructuring." That "restructuring" also included a 2011 decision to halve stipendsi'or coaches, music directors, club advisers and other extracurricular positions - a move that prompted the departure of longtime football coach Mike Melnyk. In 2012-13, the district restored funding for some stipends but eliminated other positions to keep costs at bay. Activity buses were cut, a high school work-prep program was eliminated. The district instituted student activity fees that are the among the highest of any school district in the county. This, even as the teachers' union agreed to a two-year wage freeze in 2012 and taxes have gone up - by 1.7 percent, the state maximum, for 2013-14. Said one teacher, who asked not to be identified: "From top to bottom the past two years, they've been pinching pennies like crazy." Manheim Township is hardly alone. Most county schools raised taxes for the upcoming year, while cutting millions in expenditures even as other costs rise. All districts are losing students and money to charter schools and all face steep increases in pension contributions, health care and special education costs. All are getting pushback, to some degree, from residents fed up with continual tax hikes. Debt load But few have Manheim Township's debt load. According to the Pennsylvania Department of Education, Manheim Township ended the 2011-12 school year with $141.3 million in debt (debt has since fallen to about $134 million, district officials say). That's up 142 percent from $58.4 million at the end of the 2002-03 school year. Of the 499 school districts in Pennsylvania, only 24 had more debt in 2011-12 than Manheim Township. Its 201112 debt load was secondhighest in the county, behind only the School District of Lancaster's $163.8 million. But the School District of Lancaster's budget is much larger; SDUs debt as a percentage of overall expenditures ($172.2 for 2011-12) was 95.1 percent. Manheim Township's debt as a percentage of expenditures was a whopping 194.3 percent - by far the highest in the county. For 2013-14, Manheim Township has budgeted $12.4 million in principal and inter- est payments. That's about 16 percent of all expenditures for the year. Freeman points out that the district remains well within state guidelines concerning its indebtedness. But the district's "above average debt burden" led it afoul of Moody's, which last year cited it as a reason for downgrading the district's bond rating from Aa2 to Aa3. Most of the district's borrowing was done to pay construction costs. But some was done to payoff earlier debts, such as a $61.35 million deal involving an interest-rate swap in 2011 to consolidate four earlier swaps. Swaps are complex transactions that allow a school district, municipality or other party to obtain a "synthetic" fixed rate on its debt. It's supposed to lower borrowing costs while at the same time hedge against the possibility of rates rising. In 2009, Pennsylvania Auditor General Jack Wagner issued a blistering report, noting that 107 school districts and 86 local gov,e rnments in Pennsylvania had $14.9 billion in public debt tied to swaps, and many had lost money. The Bethlehem Area School District lost at least $10.2 million in taxpayers' money through swaps, said Wagner, who subsequently called for more oversight of public swaps. Some legislators have called for outright bans. Manheim Township officials say the district lost no money on its swaps, and that the decision to consolidate the four earlier swap transactions into a new deal was done for the sake of "convenience." The district used the swap financing to issue $61.35 million in new bonds, using $60.96 million to payoff the older bond obligations meaning the district taxpayers paid $390,000 in finance costs. The borrowing, district officials said, is done for now. But the changes aren't. "Common Core changes ... are moving into the middle school the next two years; we're looking at how we're going to have to redesign our math instruction," said Mike Bromirski, the district's assistant to the superintendent ~ =: t: ~ ~ ~ ~ ;::: ~ ~ ~ .~ ~ ~•• • =-~ ~ S .~ i = ~ Debt rising By the end of fiscal year 2011-12, debt for Manheim Township School District had grown 142 percent in 10 years. $Mll. $150 - MANHEIM TOWNSHIP SCHOOL DISTRICT 1125 - OUTSTANDING DEBT $141.3 Mil. $100 - I5O-CIII_ $25-----2002-03 2003-04 2OIJ4.{l52005.{)6 2CJ06.07 2007-08 2008-09 2009-10 2010-11 2011-12 SOURCE: Pennsylvania Dep.:1rtmcnt of Education for elementary education. That could, again, mean cuts to art or music. Fiscal constraints may force other changes. Officials say they realize all of this puts the district on a collision course. On one hand, there's the district's educational needs and fiscal reality. On the other, what parents want. --- Todd B. Spidle/SUNDAY NEWS In other words, the fight may have just begun. ''The issue is, how do we do what parents want, but maybe do it in a different way?" superintendent Free-man said. "We're going to have to find new ways to give kids what they need. It's going to require everybody to do more work." = Jeff Ruppenthal! Staff In this June 21, 2013, file photo, Campbell Heller works ona sign before a protest against cuts to extracurricular programs in Manheim Township School District.