Keystone Today

Erie's Public Schools (EPS) last month were officially removed from Financial Watch status – the first school district in Pennsylvania history to receive that honor.

EPS was placed on Financial Watch status in 2016, according to a news release from Gov. Tom Wolf's (D-PA) office. Since then, the district worked with state officials "to solve continuing financial problems" in many ways. This included following a financial improvement plan created by James Ohrn, who was appointed as the school district's financial administrator by Wolf.

"My analysis of the financial footing of Erie's Public Schools' General Fund now confirms that, after access to additional local and state support, prudent usage of federal stimulus funds, and ongoing initiatives for cost control, the future financial projections over the next five years are both structurally balanced and provide the necessary funds for curriculum upgrades and capital improvements," Ohrn said in the news release.

Wolf praised EPS for the work done to make improvements and said the district serves as an example of what schools that are struggling can accomplish.

"I am immensely proud of Erie's Public Schools and the years of work leaders have dedicated to improving their financial health," Wolf said in the news release. "Their removal from this designation today marks the first time in the commonwealth a district has been removed from Financial Watch status. It is a monumental accomplishment. 

"Erie has demonstrated its ability to maintain a structurally balanced budget and made strategic investments in students, staff, and programs that previously struggled due to financial challenges. Through strong partnerships and oversight locally – and additional education funding from my administration – the district was able to stabilize its finances. Their recovery process should serve as a model for other school districts that are struggling financially."

The district worked with the Department of Education (DOE) since it was put on the Financial Watch list. This action involved replacing outdated curricula; hiring staff to support students in English/language arts and math; and hiring teachers for art, music, and education classes, which had been reduced in prior years.

"Over the past eight years, the Wolf administration has been committed to providing targeted support and funding to Pennsylvania's schools, and those efforts combined with the strong partnerships formed between the school district, the state, and the local community have laid the groundwork to benefit students and their families for years to come," Eric Hagarty, acting secretary of the DOE, said in the news release.

Hagarty praised Ohrn's work and the leadership of Brian Polito, EPS superintendent.

"This is a momentous day in the history of Erie’s Public Schools and is a day of celebration for everyone in the district who helped lift us to this point," Polito said in the news release. "That we are now being removed from Financial Watch – the first district in the commonwealth to achieve such a goal – is a testament to diligent and thoughtful planning in every aspect of our organization, strategic execution of that plan, and, of course, robust support from the state – without which, we would not be here today. I'm so proud to say this district is now much better positioned, financially and operationally, to serve our families and meet the mission of ensuring every student finds a personal path to success."

State Reps. Pat Harkins (D-Erie) and Bob Merski (D-Erie) praised the partnership between the school district and the state.

"Leaving Financial Watch status is a huge milestone for the Erie City School District, which has worked hard to comply with the requirements of the state's plan and now has the ability to maintain a balanced budget for years into the future," Harkins said in the news release. "While the district is grateful for its partnership with the state, greater financial stability does not mean our fight is over. Erie schools have faced decades of underfunding that have made it impossible to compete with schools in wealthier zip codes. We will continue fighting for more Level-Up funding in the years ahead until we can finally, truly level the playing field for our students."

Merski, a former teacher, said the path to financial solvency was no small task. 

"... The state has been an essential partner along the way," Merski said in the news release. "We fought hard for millions in recurring aid, and the state delivered. Now, with historic funding for Erie in the new state budget and a talented, dedicated workforce, the district is ready for autonomy. While it is exciting to see management of our district return to local control, our work is far from finished. Restoring the instructional staff and other cuts that were made to get us back to solvency will be a major focus in the months ahead. But, it is encouraging to know that we will be working on those goals from a stronger, more stable position."