The oversight panel for Philadelphia’s cash-strapped school district is moving to borrow $300 million to cover a budget gap while it seeks to overhaul operations and right its financial ship.
The Philadelphia School Reform Commission on Monday approved a five-year plan including the bond deal. The borrowing would cover a deficit of more than $200 million for this year’s $2.5 billion budget, plus an anticipated shortfall for next year.
The Philadelphia Inquirer reports Chief Recovery Officer Thomas Knudsen told attendees the shortfall could balloon to $1.35 billion over the next five years unless the district makes major changes.
The five-year plan includes school closures, reduction of labor costs and seeking new revenue sources.
The borrowing still requires regulatory approval.