School District of Philadelphia approves $4.6 billion operating budget

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The School District of Philadelphia has adopted a $4.6 billion operating budget for the 2026-2027 school year amid a $300 million structural deficit.

The board unanimously approved the operating budget, while passing the capital budget in a 7-1 vote. Board member ChauWing Lam was the lone no vote. Wanda Novalés was absent during the meeting.

Superintendent Tony B. Watlington has said the deficit is due to “chronic underfunding and the loss of federal COVID-19 relief funds.” To cover the gaps, a preliminary budget passed in March ordered $50 million in classroom cuts and an additional $169 million in central office cuts.

This would freeze, cut or reassign about 265 positions throughout the district, but would prevent teacher layoffs and cuts at schools set for closure under the controversial facilities plan. However, it will likely lead to an increase in overall class sizes, which research suggests could impact academic performance.

Below is a detailed breakdown of 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

The board also approved its $1.5 billion six-year capital program stretching from fiscal years 2026 to 2032. The budget includes funds allotted towards multiple projects:

• New construction at Comly New Middle School – $59.7 million
• Major renovations – $188.8 million
• Heating and air conditioning system – $71.8 million
• Exterior renovations – $135.8 million
• Solar panel installation at Saul, Mayfair, Northeast Community Propel Academy, Dobbins High School, Furness and Hamilton – $5.1 million
• Electrical upgrades – $138.5 million
• New additions – $293.1 million
• Site improvements – $73.6 million
• Security equipment – $43.5 million
• Minor renovations – $70.2 million
• Other projects, including addressing school environment concerns like asbestos – $448.9 million

In March, Mayor Cherelle Parker proposed a $1 rideshare tax benefiting the school district. Since then, Uber has launched an advertising campaign against the proposal. If approved, it would go into effect Jan. 1, 2027, and could generate $48 million annually by 2028.

Thursday’s meeting took place less than a month after board members approved Watlington’s $3 billion plan to close 17 schools and modernize 169 others. The plan faced several revisions, initially calling for the closure of 20 schools. The district will use $1.1 billion of its own resources and seek an additional $1.9 billion in funding for the plan. Critics argued that the plan would disproportionately impact Black students and move hundreds of students to lower-performing schools.