PHILADELPHIA (KYW Newsradio) — The dire financial picture created by the coronavirus pandemic could lead to layoffs in the School District of Philadelphia, according to its chief financial officer.
With city business taxes and liquor-by-the-drink revenues down sharply because of the city’s COVID-19 restrictions, Chief Financial Officer Uri Monson said the district faces an $11 million shortfall.
He said job cuts may be necessary as soon as next month.
“We are starting to look at where we would want to consider limited furloughs or layoffs as additional ways to close the gap,” Monson told the Board of Education’s Finance and Facilities Committee Thursday night. “It is the last thing on the list. We’re trying to avoid that if at all possible, and I’m looking for any savings we can and making sure we’re capturing all the savings before we get to that point.”
Typically, the district receives $6 million to $7 million a month from city liquor-by-the-drink taxes, according to Monson. But with restrictions on city bars and restaurants, he said the district only received $2.5 million last month.
When it comes to expenditures, Monson said the district has saved money on transportation and substitute teachers, as well as from putting a hiring freeze on the central office. However, he noted there have been additional costs for personal protection equipment and preparations for school buildings in anticipation of an eventual reopening.
Monson said the revenue and expense figures change almost daily, and much depends on the reopening plans from the city and the district.
The district doesn’t have its own taxing authority. Monson said the pandemic has decimated the city and state budgets as well, so the only place the district can realistically look for revenue help is a stimulus package from the federal government.