PHILADELPHIA (KYW Newsradio) — With federal COVID-19 cash expiring next year, the School District of Philadelphia is putting out an early call for more city and state funding.
"We're going to lose some significant federal dollars next year and go off a funding cliff if we don't procure more resources from the state and city," Superintendent Tony Watlington told reporters in a Zoom call before Thursday's meeting with the board of education.
Even factoring in the standard increases in city and state funding, the district's expenses will outpace revenues by more than $400 million next fiscal year, said District Chief Financial Officer Mike Herbstman. "Now we've reached a place where, due to years of insufficient funding and the end of the federal COVID-19 relief grants, we, like other districts throughout the commonwealth, face upcoming structural deficits," Herbstman said.
"Notwithstanding the fact that we're still understaffed, we're still intending to tighten our belt," Watlington said.
Budget-cutting measures will include streamlining reserves and reviewing vacant positions in the central office, and spending down the district's $700 million fund balance over the next four years. But, Herbstman said, that won't be enough.
"With all of these austerity measures, the district will still need more funding," he said.
How much more? He says $300 million, next year, to maintain the status quo, and $500 million from the city and state to approach what Herbstman called "funding adequacy" within five years. He pointed out that the district's current budget projections do not include any increase in state funding that may result from this year's Commonwealth Court decision that state funding of schools was unconstitutionally inadequate.
The school district is losing funding for programs including 783 mostly school-based positions. Other initiatives funded with federal COVID money include most summer and after-school programs.
The district has shared its concerns with the state legislative delegation. Watlington said, while he's welcomed mayor-elect Cherelle Parker to office, he hasn't yet had a detailed discussion with her about the district's finances. Watlington has set up a series of surveys and meetings with parents, staffers and funders in the months ahead to talk about budget priorities.
