The Allentown School Board has narrowly approved borrowing $10 million for the district to avert a financial crisis — almost two weeks after it was deadlocked on the same vote.
For the second time, the board voted Tuesday on the bond the district recommended to fill a $7.6 million hole in this year’s budget. At that last meeting, only eight members were present because board President Audrey Mathison was absent for health reasons. The bond failed that night on a tie vote.
At the special meeting Tuesday night which Mathison called for, all nine members were present. The board voted 5-4, eight members repeating their previous votes and Mathison deciding it.
Mathison, Vice President Elizabeth Martinez and directors Ce-Ce Gerlach, Charlie Thiel and Sara Brace voted yes for the bond. Directors Lisa Conover, Cheryl Johnson-Watts, Phoebe Harris and Robert E. Smith, Jr. voted against borrowing.
Directors who voted for it felt as if borrowing money was the only way to pay employees and bills; those who voted against it thought it was irresponsible to vote for a loan that includes more than $4 million in interest.
When it was time to vote on the bond, Gerlach hesitated before saying “yes.” After the vote, Gerlach said she “absolutely hated” voting for the loan and wants to see the district pinch money anywhere it can. She spoke against administrators and directors attending conferences and going to dinners on the district’s dime.
“When you’re living on a loan, you live like you’re poor,” Gerlach said. “I really hope I don’t regret this vote.”
Directors who voted against borrowing showed frustration that they were called back again to vote on the bond.
“We voted,” Conover said. “And it was done. So why are we back here?”
District solicitor John Freund told Conover that whatever happens at a previous meeting does not control what happens at future meetings, so the board could vote on an issue again. Mathison said she called the special meeting because she believed the bond deserved a second look.
Before the vote, Smith made a motion to have a “supermajority” on the bond, meaning it needed six votes to pass, but his motion failed.
After the meeting, Superintendent Thomas Parker said he regretted that the district was in the position that it needed to take out a loan to pay bills, but he said borrowing the money was the right decision. The district said this year’s deficit is mostly from salaries, which came in higher than expected because of miscalculations in the previous years’ budgets.
Other costs weighing on the district are about $60 million in charter school tuition and a high population of special education students and English language learners. In the past, the board has approved borrowing from the district’s fund balance, which was $32 million in 2014 but is now depleted.
Usually the board has sparse attendance at its meetings, but Tuesday night, every seat was taken. Seats set up outside the room in an overflow area were also occupied.
The crowd at times was rowdy and attempted to engage with directors. One man walked out of the room when Gerlach started to talk after the vote.
“I did not want to vote this way,” Gerlach said after the vote.
“Then you shouldn’t have,” one woman in the audience shot back.
A number of school directors are running in elections this year. Directors Thiel, Mathison and Smith are up for reelection on the school board. Johnson-Watts is running for Allentown mayor, while Gerlach is running for City Council.
Before the vote, five people spoke during public comment, including Republican mayoral candidate Tim Ramos. Ramos called on administrators and Parker to take a pay cut.
Behind him, members in the audience started to say that Parker did voluntarily take a 1 percent pay cut — $1,750 — of his $175,000 salary in March. Two women bickered among themselves about whether Parker’s pay cut was enough.
Teachers union President Debbie Tretter also spoke. Tretter said the district has been canceling negotiation meetings with the union. Without giving details, she said the union has a proposal that would “save the district millions of dollars.”
“Our team wants to do our part to help the financial mess that we did not create,” Tretter said.
The $10 million loan will go toward the district’s pension obligations. It will also help offset the 2019-20 deficit from $28 million to $18 million.
Last month, the district recommended adding the extra borrowing to a bond already planned for the new elementary school. The board approved the bond for the elementary school, but the extra $10 million in borrowing was not approved.
Before the meeting ended Tuesday, Smith called for no tax increase in the 2019-20 budget. The board has the ability to raise taxes up to 3.5%. Parker said the district will make its recommendation on taxes in June.
The district must pass a budget by June 30. Last year, the district was short $10 million, but the state came through with that money — no strings attached — a week before a budget needed to be passed.
