As of the 2023 Annual Comprehensive Financial Report, Pittsburgh Public Schools (PPS) had 19,764 students but space (functional capacity) for 16,000 more. Thus, in January the board passed a resolution calling for a facilities utilization plan and issued a request for proposals two months later. On Oct. 15 the consultants (ERS) delivered their final recommendations for “opening three new schools, reconfiguring 12 schools and closing 14 schools and 10 facilities, which would reduce the District’s footprint from 54 to 42 schools.”
PPS’ footprint currently consists of 60 buildings totaling 6.0 million square feet. The district’s utilization percentage (enrollment divided by functional capacity) stands at 53 percent as of the latest update. The average utilization factor for the buildings set to close is 49 percent, ranging from 25 percent to 74 percent. ERS noted that building capacity and quality — including age, enrollment, need for renovations, etc. — were considered in their school closure recommendations.
There is $20.3 billion taxable assessed value in the district and $11.6 billion that is tax-exempt. The 10 buildings slated for closure total $50.1 million in assessed value. While this is only 0.43 percent of the total exempt property, their sale would nonetheless ease some of the burden on the district’s budget via savings on building maintenance and repair. The school board is currently deliberating whether to accept all, part, or none of ERS’ proposed plan.
While the proposed sale of excess buildings would present a prudent path forward, there are a number of stumbling blocks that must first be overcome. Pennsylvania law requires that there must be a public hearing three months before any closures. Public backlash has already resulted in the consultants revising their plan since the initial proposal in August, while a counter-proposal has been drafted by the community which includes only five closures.
Assuming the closures move forward with closings, there is no guarantee these buildings make their way onto the tax rolls. Any prospective buyer will be asked to detail their plan for the property, involve and consult the public, and work with the City Council member where the property is located. If a building is sold to a non-profit, other governmental entity, or retained by the district it remains tax-exempt.
A preview of the preliminary budget for 2025 reveals that the district is planning for $739 million in expenditures, a 3.1 percent increase from 2024. This budget assumes no school changes. The Institute has long pointed out that PPS spends an inordinate amount per pupil and reductions in expenditures are desperately needed. School closures could present potential savings on staff and maintenance costs, while selling the land/buildings to the private sector places them on the tax rolls. Ultimately, whatever decision is made will likely have no effect on this year’s budget, but will undoubtedly have ramifications for the district’s uncertain future.
