Butkovitz has questions for struggling Philly School District

    In case you hadn’t heard, the School District of Philadelphia is in a bit of a pickle. And since it was in the same pickle this time last year, City Controller Alan Butkovitz is raising his eyebrows at the district.

    “Unless School District management can provide compelling evidence to alleviate this doubt, our independent auditor’s report will include an explanatory paragraph to reflect our conclusion of substantial doubt to continue as a going concern,” Butkovitz said regarding the district’s financial viability.
    He’s got a number of concerns, and outlined them in a letter to Thomas Knudsen, the district’s new Chief Recovery Officer:

    The district’s continued ineffectiveness in solving its growing budget gap
    The district’s limited authority to further cut costs to close its ever increasing budget gap
    The inability of the School District to identify additional funding streams
    The deferral of fiscal year 2012 expenditures to the future
    No formal plans to address the projected fiscal year 2013 budget gap

    “Because the conditions raise serious concerns about the district’s continued viability, it is imperative that the School District explain to us, as quickly as possible, how they plan to deal with the adverse effects of the conditions we outlined,” Butkovitz said in a release.

    We’d love to hear Butkovitz’s questions for the Chester Upland District.

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