By Mike DeNardo

PHILADELPHIA (CBS) – The fate of 2,700 blue-collar workers at the Philadelphia School District is still unknown.

Layoff notices for 2,700 school district bus drivers and maintenance workers are scheduled to take effect July 15th, if talks with the union, 32BJ, don’t yield an agreement.

The district is seeking millions in concessions as it tries to close its budget gap. District Chief Recovery Officer Tom Knudsen says those negotiations are only made more difficult by fact that the just-adopted city budget gives the district $54 million less than expected.

“The situation that we find ourselves in as a result of City Council’s actions, have complicated the circumstances. No question about it.”

So will the workers be laid off next weekend? In a conference call with reporters, Knudsen couldn’t say.

“That decision has not been made.”

Knudsen says the talks are continuing.

Layoff notices have been issued. but will school district blue collar workers lose their jobs next week?