Phila. SD deficit has grown to as much as $282m
Initially projected at $218 million, the deficit is now anywhere between $255 and $282 million.
Phila. SD deficit has grown to as much as $282m
Kristen Graham
Philadelphia School District officials gave an update Friday morning on the state of their finances, and it was more bad news.
Initially projected at $218 million, the deficit is now anywhere between $255 and $282 million.
City Council's decision to give the distict $54 million less than the $94 million it asked for is part of the reason for the new number. But there are other factors - $9 million more from city tax collections and a net $8 million change in state funds. And the district is also bracing for a revenue loss of up to $27 million by virtue of tax appeal losses.
Officials say they want to make up the money by collecting delinquent taxes, and say they are taking steps with the city to make that happen. Should that effort not yield enough new money, though, they say they will have to consider things like non-school cuts, reductions to salary and benefits (both unionized and non-unionized employees) and finally, school cuts - the last resort, they said.
The district was already planning on deficit financing its projected $218 million gap. School Reform Commissioner Feather Houstoun said that while the district has the authority to finance up to $300 million, it would not be wise to do so.
"If you use borrowing for this, it’s just another one-time revenue that you have to fill next year." Houstoun said. "The more we can limit the size of the deficit this year and the use of deficit financing for that, the better the sitation will be going forward into next year."
Chief Recovery Officer Thomas Knudsen said the shifting financial picture complicated the negotiations with 32BJ Local 1201, the blue-collar union representing bus aides, cleaners, mechanics and others. Hundreds of its members have received layoff notices that would take effect July 15 if no action is taken; the entire workforce would be laid off by the end of the year with no intervention.
Knudsen said no decisions had been made yet on whether the layoffs will take effect. Union officials have said they put millions in concessions on the table to save jobs but have not heard back from the district.
"Right now, we're still talking to the unions," Knudsen said.
Comment removed.
Why do they keep revising this figure upward?? They should know by now how deep they're on! No self-respecting CFO would EVER run a business this way! Dopes!— jverlin- even with avi the sdp will not be able to keep up with the deficits. Union 32bj is done and should and will be laid off. Wait until people get there new tax bill with AVI it will be the down fall for the teachers union next contract. The major cause of the deficit is the pensions and health insurance cost for the teachers that just keeps increasing every year. The city can't afford the rising cost and the rich are going to move and this is what you call check mate for the middle class with raising there taxes.— PhillySM
- I'm sure the City has been going after tax deliquents for many years but unfortunately it takes a long time to finally get a court judgement. I think the only way to address the deficit is to half the number and the salaries of administrators. I would leave the number of teachers alone since there is a direct relationship between the number of students to be taught and the number of teachers required. I would reduce the number of school buildings and initiate late afternoon and evening school hours for all school buildings so that a smaller number of buildings can accommodat a larger population of students; this would also allow the PSD to reduce the number of building maintenance workers and custodians.— BobSG
- Comment removed.
- Per the following from the NYC budget, it'd be a needed laugh for current Phl taxpayers to watch our Confederacy of Dunces whine about why this wouldn't work in Phl. "Trash Fee to Target Nonprofits
By MICHAEL HOWARD SAUL
Deep inside New York City's recently approved budget is a $17.2 million revenue estimate for Mayor Michael Bloomberg's controversial plan to charge universities, religious institutions and nonprofits a new garbage-collection fee."— axxell - Comment removed.
- So they're spending billions over in Europe looking for the Black Hole when it's right here. The tragedy is another lost generation of children who have to face the future without a decent education. Oh wait, it's not about the kids, it's about the teachers, their unions and the fat politicians sucking up money from an impotent electorate that doesn't care.— audiesgirl
Seize the assets of one financial terrorist (aka banking CEO) and there will be plenty of money to fund the school district. Better yet, seize one of the too big to fail banks, make it a national bank, and then lend the money to government at no interest. The biggest waste of taxpayer money is interest on debt to private banks for money that is needed for public interests.— jp8899- Cut spending and close more schools! Failing institutions need to fail. Stop throwing money at them. Keep the best performing schools and keep them full. Recommend charter schools. Stop the waste of taxpayer funds. The monopoly on the education business is over.— anti-tax
- There's just a lot of hot air right now from the SRC and city council. You can't believe a word out of their mouths.— nikki1231
- Giveme, giveme, giveme, more, more, more, I am a school district, give me. more, NOW!— sawtooth354
- Comment removed.
- Comment removed.
- This comment has been deleted. — Cuddles
During the school year, you’ll frequently find her hosting live chats about the district on Philly.com. Please do pass along the scoop about what’s going on at your Philadelphia public school; Kristen welcomes tips, story ideas and witty banter at kgraham@phillynews.com or 215-854-5146.
You can also follow Kristen on Twitter here.
