Philadelphia School District proposes $225 million in budget cuts. Here’s what it means

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The School District of Philadelphia has proposed $225 million in budget cuts for the 2026-27 school year, including eliminating 220 building substitute positions, to address ongoing deficit.

How did we get here?

Philadelphia schools are facing a $300 million structural deficit.  This lack of funding stems from “chronic underfunding and the loss of federal COVID-19 relief funds,” according to Superintendent Tony B. Watlington.

If approved, the district will implement the $225 million in cuts next fall and an additional $20 million each following year, with the goal of eliminating the deficit entirely by the 2028-29 school year.

The proposed cuts will also prevent any loss of teachers to the 18 schools set to close under the Facilities Plan.

“Navigating a budget deficit is difficult and requires tough decisions,” Watlington said in a statement Friday. “This kind of challenge is not exclusive to Philadelphia – there are public school districts across the country having similar experiences.”

What is getting cut?

The proposed $225 million in cuts is divided into two separate categories: central office cuts and school-based cuts. At the central office, the district wants to freeze and remove 130 vacant positions, as well as implement budget efficiencies, a  $139 million cost-saving measure.

At schools, the budget cuts will affect personnel.

The proposal would eliminate all 220 building substitutes and would reassign 340 school-based positions, with impacted employees moving into other openings within the district. These alterations would save $56 million.

Substitutes may be assigned to fill other vacant positions, according to Chief Financial Officer Mike Herbstman.

Advocates criticize loss of substitutes

Education advocates across the Philadelphia region condemned the district’s proposal to remove hundreds of educators, which they say could exacerbate an ongoing substitute-teacher staffing crisis in the city.

In a joint statement, Children First, Education Law Center, Public Interest Law Center and Teach Plus PA called on Mayor Cherelle Parker and City Council to block the proposed “devastating” budget cuts.

“For Philadelphia students who already do not have enough educators working with them each day, these cuts will be devastating,” said Amy Kobeta, communications director of Children First. “Philadelphia’s elected officials must do everything they can to make sure this will not happen.”

The full list of cuts

As the budget development process continues, Watlington said he will update on any future changes. As of now, here is a full list of the proposed budget cuts:

• Freeze central office vacancies, cut approximately 130 vacant central office positions, and reduce additional central office costs – $30 million savings
• Reduce contracts and low return-on-investment programs – $36 million savings
• Implement budget efficiencies – $103 million savings
• Eliminate approximately 220 building substitute positions – $13 million savings
• Reassign approximately 340 school-based positions with all impacted employees moved into other vacant positions, in accordance with collective bargaining agreements – $43 million savings