STACK CALLS FOR AN AUDIT OF PHILADELPHIA SCHOOL DISTRICT FINANCES


PHILADELPHIA, Feb. 13, 2007: State Sen. Mike Stack today called on state Auditor General Jack Wagner to conduct an audit of the Philadelphia School District’s finances.
“Last year, the Philadelphia School District revealed that they had a ‘surprise’ $73.3 million budget deficit,” Stack said. “It is shocking that the school district would have another staggering budget deficit after making millions of dollars in budget cuts.”
Stack said an audit would determine if the district has mismanaged or misspent taxpayer money.

“These ‘surprise’ deficits are inconsistent with the positive financial picture that has been painted by the school district over the last several years,” said Stack. “There seems to be accounting irregularities or other substantial problems that are causing these budget deficits. An audit will give the public, the School District of Philadelphia, the School Reform Commission, and elected officials the information they need to understand these deficits and to prevent them.”

The senator’s suggestion comes as the school district, which is already in debt, could face a bigger shortfall next year. Today’s Philadelphia Inquirer revealed that the district currently has a $73 million deficit that could nearly double to $140 million next year.
The district serves more than 210,000 students in its 300-plus HeadStart, preschool and elementary, middle, high, charter, vocational and special schools.

“Our children deserve every opportunity to succeed, and a deficit like this only hurts their education,” Stack said. “Parents, teachers and principals fight too hard to maintain positions, after-school programs, libraries and supplies. We owe it to the 210,000 school children who need and want to learn.”


The letter pasted below was sent to Auditor General Jack Wagner today.


February 13, 2007


The Honorable Jack Wagner
Auditor General
Room 229 Finance Building
Harrisburg, PA 17120

Dear Auditor General Wagner:

I am writing to request an audit of the finances of the Philadelphia School District and the Philadelphia School Reform Commission. Last year, the Philadelphia School District revealed that they had a “surprise” $73.3 million budget deficit. This “surprise” deficit was made public after the School Reform Commission adopted an operating budget. To close the deficit, the School District and School Reform Commission made significant cuts to programs, operations, and staff. The “surprise” deficit and corresponding cuts have turned into a nightmare for teachers, administrators, students, and parents who have bared the brunt of these cuts.

Today, both the Philadelphia Inquirer and Philadelphia Daily News reported that the district is facing an additional $100 million deficit for the next fiscal year. The size and scope of these two deficits is staggering. It is especially staggering given the positive financial picture that the School District has presented over the last several years.

In order to get an accurate accounting of school district funding, I request that your office conduct a financial audit of Philadelphia School District and Philadelphia School Reform Commission. I also request that the Auditor General’s Office investigate whether any taxpayer dollars have been mismanaged or misspent, and urge the your office to suggest improvements the School District can make to avoid “surprise” deficits in the future.

Thank you for your consideration. Please let me know if you plan to conduct an audit of the Philadelphia School District. If you have any questions or need additional information, please let me know.

Sincerely,



Senator Mike Stack
5th Senatorial District


 

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