School districts wait for reimbursements for renovation projects

School districts wait for reimbursements for renovation projects

Gov. Tom Wolf's proposed 2016 budget would reinstate a moratorium his predecessor imposed on applications for reimbursement and leave the funding level at about $306.2 million for projects in the system. Lawmakers had allowed the moratorium to expire in September and increased the budget for payouts under the 11-step approval process for the “PlanCon” program.

We have reached PlanCon Part H in the high school renovation project. What does that mean for Mt. Lebanon? Presently, the State owes the District $2.4 million. That number will increase to $3.1 million if the State doesn't reimburse the District by the end of the fiscal year. Lebo Citizen readers, when is the end of the fiscal year? June?

Where the H is H? Here it is!

On April 13, 2013, I made this blog entry: Where the H is H? I wrote:

How can the State reimburse Mt. Lebanon when we're behind in filing the proper documents for the PlanCon process? Part H (PDF), Project Financing addresses the financing used for a project. Calculation of the temporary reimbursable percent for a project's financing occurs at PlanCon Part H. Once PlanCon Part H is approved, reimbursement on a project commences. Have we done this?

The High School Renovation Process (saved in Google Docs) illustrates how behind the board is in the process. It shows that PlanCon Part F was the last submission approved. However, the February 20, 2012 agenda indicates "That the Board approves submission of PlanCon Part H to the Pennsylvania Department of Education in substantially the form presented." This is the last item I can find pertaining to PlanCon Part H. Was it ever approved by the PDE? Did the board approve it after that - approve the approval?  

But look what is going to be resolved on Monday, according to the March 17, 2014 agenda?

(4) PlanCon Part H Submission: RESOLVED, That the Board approves PlanCon Part H for submission to the State in substantially the form presented.

I will be the first to admit that I didn't watch or listen to the entire school board meeting last week. There is just so much time in a day. Would someone please explain to me why we submitted PlanCon Part H two years ago and the Board is approving PlanCon Part H again? It could explain why we never received any reimbursement. But what do I know?

Presenting PlanCon F, H, and I

This should have been posted on the school District website, Mt. Lebanon High School Project Documents. The PlanCon documents stop at PlanCon Part E on their website.  In fact, it hasn't been touched since September 12, 2011.

Through Right To Knows with the State, here are the rest of them.

PlanCon Part F

PlanCon Part H

PlanCon Part I

Increase State Funding for Our Taj Mahal!

No budget posted as of 3:00 PM today on the District website, but the Board still has approximately nine hours until 30 days before the vote for the Final Budget for the 2013-2014 school year in the amount of $83,249,503 at a millage rate of 27.67 (unadjusted for any change in assessed value) an increase of .54 mill(unadjusted for any change in assessed value) over the 2012-2013 school year on May 20, 2013.

What has been posted on the District website is:

RESOLUTION URGING INCREASED STATE FUNDING

WHEREAS, a significant delay in receiving the state reimbursement at Part H of the PlanCon process has already cost $1.4 million in delayed funding and will force the Mt. Lebanon School District to make, a significant delay in receiving the state reimbursement at Part H of the PlanCon process has already cost $1.4 million in delayed funding and will force the Mt. Lebanon School District to makes already cost $1.4 million in delayed funding and will force the Mt. Lebanon School District to make costly financial choices which may involve an increase in taxes, borrowing additional money or financial choices which may involve an increase in taxes, borrowing additional money or reduction of programs or services totaling over $11 million; of programs or services totaling over $11 million;

It won't be the School Board's fault when the taxes increase.
It won't be Tim Frenz from Janney Montgomery Scott LLC's fault when the taxes increase.
It won't be Jan Klein's fault when the taxes increase.
It won't be the Administrators' fault when the taxes increase.
It won't be the Master Design Team's fault when the taxes increase.
It won't be the unions' fault when the taxes increase.

It will be the PA Department of Education's fault, the agency that received our fake budget.

Where the H is H?

On Monday's school board agenda, the board will approve a resolution urging increased State funding for school construction and renovation projects in the form presented.

The PG reports:

Meanwhile, the board plans to approve a resolution next week as a formal objection to not receiving state reimbursement for a portion of the ongoing high school renovation project.

Participation in a long-standing process called Planning and Construction Workbook, or PlanCon, entitles school districts to be compensated for embarking on capital improvement projects.

According to Mr. Steinhauer, Mt. Lebanon is owed about $450,000 per year, eventually totaling $11 million, but the state budget has not provided for any reimbursements to school districts the past two years. Some 125 districts are being affected, and many have drafted similar resolutions.

The documents are being sent to the offices of Gov. Tom Corbett and Education Secretary Ron Tomalis, as well as to state senators and representatives. Many of them are unaware of the lack of reimbursements, Director Mary Birks said.

"We are bringing it to their attention so that they know what the issue is," she said.

How can the State reimburse Mt. Lebanon when we're behind in filing the proper documents for the PlanCon process? Part H (PDF), Project Financing addresses the financing used for a project. Calculation of the temporary reimbursable percent for a project's financing occurs at PlanCon Part H. Once PlanCon Part H is approved, reimbursement on a project commences.  Have we done this?

The High School Renovation Process (saved in Google Docs) illustrates how behind the board is in the process. It shows that PlanCon Part F was the last submission approved. However, the February 20, 2012 agenda indicates "That the Board approves submission of PlanCon Part H to the Pennsylvania Department of Education in substantially the form presented."  This is the last item I can find pertaining to PlanCon Part H.  Was it ever approved by the PDE? Did the board approve it after that - approve the approval? 

I have been told that even after PlanCon H is submitted, approved by the state,
and the state's approval is accepted by the District, that an application for state subsidy must be submitted for each scheduled payment.  Has that been done?

Reimbursement is not reflected in the budget. Once approved, the budget cannot be reopened, unlike the Municipality.  Just as the Covenant tax money was never shown in a budget, this PlanCon money will disappear as well. How could the State provide reimbursement in the past two years when the paperwork was allegedly submitted last February?

The Lebo Shell Game lives on. As a reader commented previously,

"Jan Klein has and will continue to plug the state reimbursement hole with our tax dollars to balance the budget - read that extra millage - and that extra millage will not be reduced when the state payments are finally paid !"