The three foundations that yanked their money from the Pittsburgh Public Schools as a dramatic wake-up call in 2002 said yesterday that district officials had gotten the message.

	Matt Freed, Post-Gazette Pittsburgh school superintendent John Thompson and Max King of the Heinz Endowments appear at a news conference yesterday during which three foundations said they would reinstate funding to the district. Click photo for larger image. Related article City schools adjust to lack of support

The foundations -- The Heinz Endowments , the Grable Foundation and The Pittsburgh Foundation -- are ready to let the money flow again.

"Relations among school board members and the administration have become more collaborative and mutually respectful," Maxwell King, president of The Heinz Endowments, said at a news conference at board headquarters yesterday.

"There appears to be a greater willingness to set aside differences and to focus on the central issues of student achievement and sound financial management," he said.

Bill Isler, who became president of the school board in December, said, "The foundations' decision to resume funding tells us we are on the right track."

School officials figure the suspension of funds cost the district as much as $8.7 million in direct grants, including about $3.7 million that was canceled along with lost opportunities to apply for other money.

King said the foundations regretted any costs to "any individual student" but said the foundations didn't regret "the action we took."

He said the superintendent and district "did a very good job" of making adjustments to keep programs going.

The decision doesn't mean the money will flow immediately. The district still must apply to each foundation and go through the usual procedures. King estimated that would take "a few months."

Any new money may go to new priorities. The district's reading and writing initiative -- Literacy Plus -- was to get the bulk of the money when funding was cut, but the district has proceeded with implementing the program on its own, albeit at a slower pace.

Superintendent John Thompson said some grants may be sought to help pay for pre-kindergarten initiatives, community engagement and assessments of programs.

Before the foundations pulled their money, the school board had developed a reputation for bickering and micro-management. The relationship between the board and superintendent was strained.

When the foundations announced the cutoff in July 2002, they cited a "sharp decline of governance, leadership and fiscal discipline."

The foundations' decision led to the formation of the Mayor's Commission on Public Education, which in September issued a stinging report calling for dramatic changes, including the replacement of the elected board with one appointed by the mayor. That recommendation has not moved forward.

From that study, a citizens panel is being established to push for reforms, with funding from the three foundations and potentially other foundations. The members have not yet been announced.

In the time since the funds were withdrawn, the makeup of the board has changed, including the election of Isler, of Squirrel Hill, as president and two new members. One of them is Patrick Dowd of Highland Park, who unseated then-board President Darlene Harris of Spring Hill.

"This board is going to work together," Isler said.

With the latest announcement, Al Fondy, president of the Pittsburgh Federation of Teachers, said, "There could be no better symbol to the entire city that this is a sound school system."

King said the foundations had been concerned two years ago that relations among school board members and the administration were "no longer productive" and the broader Pittsburgh community was "not sufficiently engaged" in helping the district.

He said the mayor's commission has helped generate public involvement.

"The work of the Mayor's Commission on Public Education, while somewhat controversial, we believe was a strong statement that Pittsburgh cares about the future of its public schools and about the highest quality of education for its children," King said.

"We believe a new consensus has emerged that our schools cannot excel without the support and involvement of our entire community."

King made the announcement accompanied by Susan Brownlee, executive director of The Grable Foundation, and William Trueheart, president and CEO of The Pittsburgh Foundation.

Asked how they had spent their money during the suspension, King said all three had put money in "reserve," although they had not set up escrow accounts.

"We said we would set aside a sufficient amount of money to come back in at the same level as before," he said, adding the level of support could grow.