Philadelphia School District Needs To Borrow $300M To Get Through Next 2 Years

September 10, 2012 4:26 PM

(Philadelphia School District “chief recovery officer” Thomas Knudsen, in file photo. Credit: Mike DeNardo)

Reporting Mike DeNardo

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Education, Government, Heard On, Local, News, Philadelphia, Syndicated Local, Watch + Listen

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By Mike DeNardo

PHILADELPHIA (CBS) — The Philadelphia School Reform Commission is borrowing more money than it previously announced, to cover its shortfall for the next two years.

The school district’s five-year financial plan includes a huge loan, says chief recovery officer Tom Knudsen.

“We recommend that we borrow a staggering $300 million to finance our deficit for Fiscal 2013 and most likely part of Fiscal 2014,” he said today, because it will take longer than one year to cut the expenses necessary to bring the district into structural balance.

Knudsen says that includes more concessions from its employee unions.

The district had already planned on borrowing $200 million this year, but Knudsen says that was before City Council failed to adopt the mayor’s “Actual Value” property tax initiative and the extra $94 million it would have provided.

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Philadelphia School District Needs To Borrow $300M To Get Through Next 2 Years

http://philadelphia.cbslocal.com/2012/09/19/philadelphia-a-bargain-local-tax-study-says-maybe/ Philadelphia a Bargain? Local Tax Study Says… Maybe « CBS Philly

[...] plans to overhaul the current property tax system (see related story), the schools crisis (see related story), or the economic downturn and its effect on property [...]