Philly school district facing cash-flow problems without state funds

The School District of Philadelphia is anticipating a cash crunch in just a few weeks.  

The problem is the budget stalemate in Harrisburg.

With no state budget in place, the city schools are missing out on vital state funding, said William Hite, district superintendent.

“Without that revenue, we will run into peril because it will be a situation where we do not have the cash to take us through without the monies that typically come from the state,” he said Wednesday.

The district is already nervous about its cash-flow situation.

“We are constantly analyzing and trying to come up with contingency plans. We are negotiating with vendors.” Hite said. “We are talking with individuals that we have to pay and talking about how we can reduce those payments so we can go a little longer.”

The district will not run out of cash at the end of October, said Hite. And he’s hopeful there will be a budget before then so the schools won’t have to find out exactly when the coffers are empty.