Will Pennsbury High School Project Get Past The Act 34 Hearing and Referendum?

Since 2019, public record documents reveal that the Pennsbury School District Administrators and the School Board have been actively reviewing ways to upgrade the facilities at PHS East and PHS West. Momentum increased in 2023 when a Request For Proposal (RFP) was issued to gather design plans and bid proposals from various architectural firms. The decision to move forward with the RFP was made by a lame-duck Board in November 2023, just before the reorganization meeting scheduled for December 2023.

Background On Pennsbury High School Building Planning Efforts

Public records from Pennsbury show discussions about high school building projects intensifying during a Facilities meeting on September 2, 2021. Audio from the meeting is available in the Pennsbury Meeting Archives. In the meeting, D’Huy Engineering presented three options for consideration: a standalone 9th grade building, a PHS East renovation, and a renovation/expansion plan for PHS West. The projected costs for these proposals ranged from $90M to $110M. Details of the building scenarios can be found on slide 17 of the presentation below.

New Cost Forecasts Double The Previous Estimates

At the November 16th, 2023 Action Board Meeting, D’Huy Engineering presented a comprehensive overview of Pennsbury’s journey towards deciding on a new building. The presentation included the earliest cost projections from 2019 and outlined subsequent iterations. D’Huy provided updated cost estimates for the PHS West renovation/expansion option, initially projected at $99M in 2021. The new estimates indicated a cost range between $185M and $240M, with limited explanation for the significant increase. A brand-new standalone building for grades 9 through 12 was estimated to cost between $235M and $275M.

Remarkably, the cost of the 2021 plan had nearly doubled within three years, and Pennsbury could now potentially construct a new building for a similar price. D’Huy’s only explanation for the cost parity was that it “depends on the intensity of the project.”

Financing Options Keep Wildly Changing

Pennsbury enlisted the services of PFM to provide estimates on financing the building costs. PFM, a long-standing vendor for Pennsbury’s bonds and refinancing efforts, was the sole bidder for the failed Morrisville Merger project, which faced public scrutiny over questionable metrics and incorrect formulas in their forecasts. The Morrisville Merger was ultimately shut down by the Pennsylvania Department of Education, as evidenced by Right To Know requests submitted to the organization.

According to the public record document below, PFM submitted three financing forecasts to Pennsbury throughout 2023, reducing the borrowing needs from $367M to $256M, with limited explanations for these reductions. Considering current annual revenues, Pennsbury’s borrowing capacity is currently limited to $321M based on the debt capacity formula.

What Is Act 34 And How Does It Protect The Community?

Act 34 of 1973, also known as the “Taj Mahal Act,” mandates that public hearings be held for significant construction projects involving new school buildings or substantial additions to existing buildings. This applies when floor space increases by 20% or more. The act requires school districts to justify the need for these projects, provide descriptions, disclose maximum costs, and outline financing plans and tax impacts.

Act 34 prioritizes transparency and public input by ensuring that communities are informed and involved in the decision-making process. Public hearings allow citizens to review and discuss proposed projects, with documentation like floor plans made available for at least 30 days. This ensures that the community can voice concerns, suggest alternatives, and hold school boards accountable for their decisions.

By requiring thorough public scrutiny and a potential referendum if project costs exceed certain limits, Act 34 aims to protect the financial interests of residents. It helps prevent exorbitant spending on school construction without adequate justification and citizen approval. This process ensures that taxpayer money is spent wisely and that new construction projects genuinely meet the community’s needs.

If Your Concerned, What Can You Do?

The answer is simple: attend your monthly School Board meetings to express your concerns about the project. Ask your School Board representative to clarify these questionable forecasts and why the renovation plan was abandoned despite being considered legitimate. Most importantly, when the Act 34 Hearing is scheduled, attend the meeting to ensure the Department of Education hears your concerns. This will help ensure they thoroughly review the cost forecast and prevent the Pennsbury community from being burdened with a partially completed building and the need for another massive tax increase.