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Penn Hills School District Exits Financial Recovery, Now in Monitoring Phase
PENN HILLS, Pa. (KDKA) – The Penn Hills School District is now in the monitoring phase after poor financial decisions led to a deficit of millions.
“When I left the school board in 2009, we had money in the bank – not a lot – but when I came back to the school board in 2015, we had $18 million in the hole. It was just shocking to me,” said school board president Erin Vecchio.
In 2019, the issue of fiscal mismanagement was presented to an Allegheny County grand jury, and although charges were not recommended, it said the district was in catastrophic financial condition and placed the blame on weak leadership, which no longer belongs. to the district.
“We were given the task of saving this school,” Vecchio said.
Then the state stepped in to provide guidance. Five years later, the district is emerging from financial recovery and hopes to do more.
“We went from having a negative savings account to having scarce cash flow,” said recovery director Dr. Daniel Matsook.
“We had zero money in our capital reserve, now we intend to renovate this building,” continued Matsook.
The district’s recovery plan includes a tax increase. John Zahorchak, director of operations at Penn Hills, said he understands the tax burden is higher than most schools in the county. As a result, the increases will come in waves, eventually totaling a $2 million increase.
Zahorchak told KDKA this will help maintain a healthy fund balance for unforeseen expenses.
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