Michael Masch

If Harrisburg doesn't come through with the state aid the Philadelphia School District is banking on, cuts to its newly adopted $3.2 billion budget could come from the classroom, officials said Wednesday. The School Reform Commission approved a spending plan that pays for new labor contracts, bigger pension obligations, and $180 million for Superintendent Arlene Ackerman's strategic plan. The budget relies heavily on federal stimulus money and $1.68 billion in state aid - a figure that Gov. Rendell proposed but that the legislature has not approved.

The Philadelphia Board of Education's chief budget official said he would cut at least $30 million from the district's 2000-01 spending plan before asking his colleagues to vote on it on May 31. Board member Michael Masch, who heads the finance committee, said he would try to cut more from the $1.6 billion plan, but only if he could do so without hurting the classrooms. "If we conclude that we can responsibly cut more, we'll do it. We'll cut as much as we possibly can. Our goal is to do everything in our power to responsibly reduce the projected deficit," Masch said.

With state funding to expand the Convention Center assured, officials are preparing to make a huge empty lot out of the site along Broad Street just north of City Hall and choose a construction contractor to start filling the space. The budget agreement reached Monday night in Harrisburg between Gov. Rendell and legislative leaders included $880 million for the Convention Center. That will provide $700 million to clear the land and build the addition, and $6 million annually for up to 30 years to help defray operating costs of the center, state government and convention officials said.

Call it the Ed-Eye Express, a high-speed rail car that almost rumbled its way from Harrisburg to Philadelphia last week. The kink in its schedule should not be seen as a problem. The train was being run by Gov. Rendell's office, which wants to recreate the old position of managing director for Philadelphia schools and put state budget secretary Michael Masch in it. There's a problem with that, and it isn't Masch. He has been an accomplished state budget secretary and was an accomplished city budget chief for then-Mayor Rendell from 1992 to 1996.

After weeks of waiting, the two gubernatorial nominees for the School Reform Commission were sworn in yesterday, completing the district's five-person governing body. Meanwhile, Michael Masch, the district's chief business officer, revealed yesterday actions the district may have to take to deal with a budget shortfall that has grown to $197 million. Mayor Nutter administered the oath of office to Joseph Dworetzky and David Girard-diCarlo, who were both confirmed by the state Senate a few weeks ago, as they were joined by family members, colleagues, fellow board members and Superintendent Arlene Ackerman.

School district officials painted a sobering picture during a budget presentation to the School Reform Commission yesterday. Either legislators crank up funding for the district or drastic cuts would have to be made that will harm students, said the district's business chief, Michael Masch. "If revenue comes in lower than what we estimated we will have no choice but to make reductions where learning outcomes take place," he said. The commission approved the district's $2.4 billion budget, which relies heavily on millions in proposed - but not yet approved - state money, and federal money that is slated to dry up by the end of next fiscal year.

Rob DuBow, who guided the fledgling Street administration through its first budget, is resigning to become the senior budget director for Amtrak, increasing pressure on the mayor to hire a finance director. DuBow's deputy, Helene Grady, also is leaving to work at Amtrak. The loss of two top financial advisers leaves Street without much of an infrastructure in a department charged with keeping the city's budget balanced and making sure services are funded. Street said yesterday that DuBow would be missed and that his departure underscored one of the difficulties the city had in recruiting and holding onto talented executives: "Our salaries are artificially low," he said.

A Northeast Philadelphia banker who is active in youth athletics has been tapped to become the newest member of Philadelphia's School Reform Commission. Martin G. Bednarek, who previously served on the district Board of Education, received the support of both Mayor Street and Gov. Rendell. His appointment, which by law is a gubernatorial appointment, is pending confirmation in the Pennsylvania Senate. Bednarek would serve until January 2005, filling out the term of Michael Masch, who left the commission this year to become Rendell's budget secretary.

Max lives. He died seven months ago, yet Max Weiner, Philadelphia's consummate consumer gadfly, still is influencing the budget deliberations in City Council, which will continue this week. He's affecting the timing of votes. He's forcing more public disclosure. And in doing so, he's even entered the vocabulary. "We call the whole process weinerizing," said Councilman George R. Burrell Jr. "He is still with us and will be with us for many years to come when taxes are considered.

Gov. Rendell plans to take until next week to sign a bill approved by the legislature to spend $700 million in state gambling revenue to expand the Convention Center, state officials said yesterday. The state Senate, by a healthy margin, and the state House, by a two-vote majority, passed the legislation late Tuesday and sent it to Rendell. But the governor's budget secretary, Michael Masch, said after a meeting of the Pennsylvania Convention Center Authority board that Rendell did not want to have a high-profile signing ceremony for the bill just yet. Rather, Rendell wants to come to Philadelphia for a more public event, perhaps while land is being cleared for the project or as construction starts, to let people from the region know how the funding will be used, said Masch, an ex-officio member of the board.