Sto-Rox advisers say financial-recovery progress continues; exit petition preparation underway

Chief Recovery Officer Nancy Hines told the advisory committee on May 27 that Sto-Rox School District has advanced beyond the initial 'triage' phase of financial recovery and is preparing detailed evidence tied to amended recovery-plan Appendix E to support an eventual petition for exit from state oversight. Hines said staff expect the audit of FY25/26 financials to occur June 30 and that, unlike last year, the district did not accept state empowerment funds for 2025–26—a change Hines said improves the district’s reported cash position.

PFM researcher Stephen Ramirez, who joined district staff in a recent Harrisburg meeting with other recovery officers, described Sto-Rox as receiving positive feedback from peers. "I think it's getting positive momentum," Ramirez said, supporting Hines’s assessment that the district is progressing toward eventual exit planning. Hines estimated that preparing a full exit petition would be detailed and time-consuming (she referenced a recent district petition of roughly 61 pages as the model) and suggested the district could be looking at roughly a two-year horizon to complete that work.

Hines explained that as the district prepares evidence for exit, monthly reporting to the Pennsylvania Department of Education will continue and district leaders will present specific department-level updates tied to Appendix E action items so the Department can review accountability and evidence of progress.

Separately, Hines updated the committee on the SASI (American School Infrastructure) grant process: a May 21 exchange with PTE project lead Aaron Dur indicated the infrastructure consultation is expected to move forward for eligible districts; the grant is federal, targets high-poverty districts and covers consultant/engineering services rather than equipment. Hines noted that original plans referenced a Penn State engineering team but the procurement may open to other providers.

Hines and PFM staff said the district will continue monthly coordination with Department supervisors and will work with PFM and IU staff to compile the petition and accompanying evidence when readiness indicators are met.