Larger-Than-Expected Budget Deficit For Philadelphia School District
By Mike DeNardo
PHILADELPHIA (CBS) — After reviewing the just-adopted city and state budgets, Philadelphia school officials say the district’s budget deficit is even larger than first predicted.
Not only is the school district getting $54 million less than they expected from the city, but school leaders say revenue losses from homeowners who win their property tax appeals could push the deficit $27 million deeper.
In all, officials say the deficit has grown from $218 million to somewhere between $255 million and $282 million.
Chief Recovery Officer Tom Knudsen says the district’s first option to close the new gap, is to launch a program to collect $150 million in delinquent city real estate taxes.
“These are funds that are out there that are relatively new, and then from my experience at PGW you want newer money versus old money, that we think we have a shot at getting.”
The district was already planning on borrowing $218 million to make ends meet, but officials say they’re reluctant to borrow more.