With No State Budget, Phila. School District Forced To Borrow To Make Ends Meet
PHILADELPHIA (CBS) -- With the state budget impasse now four months old, the Philadelphia School Reform Commission has approved borrowing millions to keep the lights on and the school doors open.
With no state money coming in, the SRC OKed the borrowing of $250 million, and authorized the district to lend itself up to $40 million from its capital fund to keep operating through the end of December.
District deputy CFO Erin Davis says the district has daily cash needs.
"There are payments to alternative education providers. There are payments to charter schools. There's payments for utilities and vendors -- water, gas, and payroll."
The extra borrowing could cost up to $2.5 million this year, but right now the district isn't projecting any cuts. SRC chair Marge Neff says she's troubled that after four months, the governor and the legislature can't find middle ground on a budget.
"We've elected these folks to govern. And I guess at this point, I'm more concerned that it doesn't feel like governing is happening."
And Neff says Philadelphia isn't alone, districts statewide are feeling the pinch.
