House considers giving intermediate units purchasing power

(The Center Square) – The House Education Committee approved a plan to allow the state’s intermediate units to purchase real estate for their operations.

The legislation has received bipartisan support with its promise to save money currently spent on costly leases.

The commonwealth’s 29 IUs serve the districts and schools within their region and function as a bridge between them and the Department of Education. They provide support through assessments, special services, continuing education, and other specialized programming.

The work of IUs demands suitable space for instruction, and many operate programs like early childhood education, alternative schooling and career and technical education. According to the bill’s sponsors, the state’s IUs serve 175,000 students and 50,000 educators each year.

Currently, they are only authorized to own warehouse and office space, leaving them to lease instructional space. Representatives supporting the measure emphasized the limitations this setup imposes on customization to suit individual needs.

Rep. Joe Ciresi, D-Royersford, and Rep. Kristin Marcell, R-Richbooro, who introduced the bill, spoke of their experiences with IUs on their local school boards. High costs and constraints on function led the Bucks County IU to bring the issue to the legislature.

Ciresi said it would allow IUs to “buy buildings to save taxpayer money where they’re renting it, design it for the needs that they have, and overall own the building rather than pay out hundreds of thousands of dollars in rent.”

Yet several lawmakers expressed concern about schools taking on additional financial and facilities burdens.

“I have grave concerns about this because we have already so many schools and buildings that have lead pipes that need repair,” said Rep. Milou Mackenzie, R-Bethlehem. “They have roof issues. They have mold. They don’t have heat and air conditioning functioning.

“Now is not the time to go ahead and give permission to buy real estate that ultimately the taxpayers are going to be responsible for paying and keeping up and maintaining.”

The bill would require any loan or purchase agreement to undergo standard approval processes and ultimately receive the go-ahead from the Secretary of Education.

“We should have confidence in the process that there are competent people evaluating whether or not it makes sense for their district,” said Rep. Jill Cooper, R-Export, adding that the bill would give flexibility to districts to compare the costs of renting and owning.

Republican Chairman Rep. Bryan Cutler, Quarryville, agreed.

“I think it’s important that local control also comes with local financial responsibility,” he said. “I trust them to make the best decision.”

Democratic Chairman Pete Scheweyer, Allentown, lamented that a bill like this hadn’t come along sooner in light of skyrocketing real estate prices.

“By giving IUs this flexibility, there is a long-term cost containment to help protect taxpayers not just today but ten years from now,” he said.

In a 20-6 vote, the bill was passed from the committee to the House floor.