Red Lion Schools’ SOS Tests Pennsylvania Distress Laws

March 10, 2016 – In The News

A. Kyle Berman was featured in the Debtwire article, “Red Lion Schools’ SOS Tests Pennsylvania Distress Laws." Full text can be found in the March 10, 2016, issue, but a synopsis is below.

The Red Lion Area School District has made the decision to cut payments to charter schools due to financial distress. School districts across the state are under fiscal pain as Pennsylvania’s circular school distress laws appear to be out of commission.

Charter schools are also receiving an increasing level of burden and fiscal stress which has led to the Pennsylvania Coalition of Public Charter Schools filing a lawsuit against the state’s Department of Education to redirect funds if a conflict arises between districts and charters.

“Were it not for the budget impasse, which I realize is the impetus for the withholding, the money withheld would simply get withdrawn from the district’s state subsidy. Without a budget there is no subsidy to take from,” said Fox Rothschild’s Kyle Berman.