Frequently Asked Questions
Q. What is Act 141?
A. Called the School District Financial Recovery Law, Act 141 (PA House Bill 1307) is legislation designed to help financially distressed schools and ensure education for the students of these schools. This law requires the Pennsylvania Department of Education (PDE) to develop an early warning system that will be used by the Department of Education to identify school districts in financial watch status. A district will be declared in Financial Watch Status if it meets the criteria established by the PDE based on data that the district is required to provide. School districts may be declared in Moderate Financial Recovery Status or Severe Financial Recovery Status. The PDE must officially notify districts in financial watch status and continue to provide technical assistance to these districts. The PDE will appoint a Chief Recovery Officer (CRO) for each district in financial recovery status. The CRO is charged with taking input from the School Board and the community to develop a recovery plan to lead the district into financial solvency and position it for academic success. The law also requires PDE to establish the Recovery School District Transitional Loan Program, which allows school districts in financial recovery status to apply for an interest-free loan in order to implement parts of their financial recovery plan.
Q. When was House Bill 1307 signed into law?
A. Governor Tom Corbett signed House Bill 1307 into law on July 12, 2012, and it is now designated at Act 141 of 2012.
Q. Does the Harrisburg school district qualify as “distressed?”
A. Yes. On Wednesday, December 12, 2012, Pennsylvania’s Secretary of Education Ronald Tomalis designated Harrisburg’s school district in “moderate financial recovery” status.
Q. What is the difference between moderate financial distress and severe financial distress?
A. A school district in moderate financial distress enables a Chief Recovery Officer ninety days to develop a recovery plan. In a district in severe financial distress the Chief Recovery Officer has thirty days to develop the plan. There are a variety of other differences between the two designations, including the requirement to appoint an Advisory Committee in moderately distressed districts.
Q. Do other school districts in Pennsylvania qualify as “fiscally distressed?”
A. Only nine districts can be in financial recovery status at any one time under the law. Four urban districts, including the Harrisburg School District, have received preliminary declarations as districts in financial recovery.
Q. What is a Chief Recovery Officer (CRO)?
A. Declaring a district in financial distress triggers the appointment by the state Secretary of Education of a qualified individual to develop a recovery plan. This person carries the title of Chief Recovery Officer.
Q. Does the Harrisburg School District have a CRO or a Receiver?
A. On December 12, 2012, Education Secretary Ron Tomalis appointed Gene G. Veno as Chief Recovery Officer (CRO). As required by law, Veno presented a plan to the school board in April 2013 for their approval. Effective July 1, 2015, Education Secretary Pedro Rivera appointed Dr. Audrey Utley as the Chief Recovery Officer to oversee the fiscal recovery of the district and assist district leaders in leveraging resources to support academic achievement. Effective October 1, 2018, Education Secretary Pedro Rivera appointed Dr. Janet C. Samuels as the Chief Recovery Officer to oversee the implementation of the plan. Effective September 13, 2021, Education Secretary Noe Ortega appointed Dr. Lori A. Suski as the Chief Recovery Officer to oversee the implementation of the approved amended recovery plan of the District and to work closely with the court-appointed Receiver, Dr. Janet Samuels, to move the District toward improved financial management, academic achievement and student stability. Upon Dr. Samuels' retirement at the end of January 2022, Dr. Lori A. Suski was appointed Receiver by the Dauphin County Court of Common Pleas while continuing to fulfill the duties of the Chief Recovery Officer. On August 29, 2022, Acting Secretary Eric Hagarty appointed Dr. Travis Waters to assume the duties of the Chief Recovery Officer on a part-time basis.
Q. What is the role of the Receiver?
A. The Receiver is appointed by a judge of the Dauphin County Court of Common Pleas to provide governance for the School District. The Receiver also carries out the duties of the Chief Recovery Officer unless a CRO is appointed by the PA Department of Education. The Receiver has the authority to approve or disapprove of any recommendations brought before the Board by the Administration. The elected School Board members retain the power to levy taxes at the recommendation of the Receiver.
Q. Did the CRO develop this plan?
A. The CRO assembled an advisory committee back in 2018, in accordance with the law, and worked with a collaboration of partners to solicit ideas. The Act 141 Advisory Committee is comprised of Harrisburg school administrators, school board members, community members and other designated educators as defined in the law. The committee meets at least one time each month to provide input into the plan and offer feedback on the implementation. In addition, the state provides the CRO with a technical assistance team to review the Harrisburg School District’s budget and help determine the financial viability of different recovery options. Consulting firm, Public Financial Management, was hired by the state education department to analyze data, make projections and help the team develop ideas for the future.
Q. How will the plan and the process impact the financial recovery of the Harrisburg School District?
A. The entire process is meant to get Harrisburg schools on the right path financially and academically.
Q. What happens after the plan is approved by the judge?
A. The Amended Recovery Plan, submitted by Dr. Janet Samuels, was approved by the judge on July 20, 2021. The approved plan was reviewed with the Harrisburg SD administrative team in August 2021 and with the Act 141 Advisory Committee in September 2021. The plan is currently being executed and is formally monitored on a monthly basis by the District administration. A dashboard of progress on the Amended Recovery Plan initiatives was made public and is posted to the District website.
Q. When does the District exit receivership?
A. Receivership is a three-year process which began on June 17, 2019. In the spring of 2022, the PA Department of Education petitioned the courts to extend receivership for an additional three years. In order to exit receivership, all 62 initiatives of the Amended Recovery Plan must be accomplished to the extent that the court sees fits to return the District back to local control.