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'Massive Layoffs' Loom As Philadelphia School District Attempts To Fill $300M Budget Hole

By Mike DeNardo

PHILADELPHIA (CBS) - The school district says "massive layoffs" and program cuts loom if it doesn't fill its $300 million budget hole.

No art. No extracurricular activities. No interscholastic sports.

Schools superintendent William Hite says if the district doesn't get $304 million in extra revenue from the city and state and concessions from unions, deep cuts will be made.

"This situation is dire. It's real. And it's why we're required to ask for sacrifices from all parties," Hite explains.

He says the district will have to cut $220 million out of school operating funds -- meaning principals would budget for themselves and teachers based on maximum contractual class size, but not much more -- putting the jobs of teachers, librarians and guidance counselors in jeopardy.

The district borrowed $300 million this year just to pay its bills, but Hite says the district is not in a position to borrow much more.

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