PHILADELPHIA (KYW Newsradio) — The Philadelphia Parking Authority has agreed to let the School District of Philadelphia keep $11 million that it had earlier described as an overpayment. That payment sparked a dispute that contributed to the firing of the authority’s executive director in March.
PPA revenues are divided between the city and school district. In 2020, the PPA paid the district $14 million.
Then, a year and a half later, the PPA said auditors had determined that the payment was $11 million more than it should have been. It left open the possibility that it might demand the money back.
That outraged City Councilmember Helen Gym and prompted Council to launch an investigation of the PPA’s finances. She said the agreement is fine as far as it goes, but the investigation is still on.
“I don’t think there was any question we weren’t going to allow the Parking Authority to take money out of the hands of school kids, but the issue remains [about] what is going on at the Parking Authority,” Gym said.
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“This is certainly not the first time that financial management has risen to the level of public spectacle, and we have to get to the bottom of it.”
PPA Board of Directors Chair Beth Grossman announced the agreement that the authority would adjust payments to retiree health and pension funds to eliminate the overpayment. The move also provides an extra $900,000 to the city.
"This is a legal and responsible resolution for all parties that benefits the school children of Philadelphia,” said Grossman.
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“The PPA will continue to work with the city and school district whenever possible to enhance revenues and improve customer service to the multitudes of people who live, work, visit and park in Philadelphia."
"The city appreciates the work of the Parking Authority staff and Board to help us reach this reasonable conclusion,” added City Finance Director Rob Dubow.
“This is a good outcome for the district that ensures we can focus on devoting resources to meeting the needs of the students of Philadelphia,” said School District of Philadelphia Chief Financial Officer Uri Monson.
The fight with the School District of Philadelphia was not Petri’s only misstep.
The PPA’s contract for airport parking is also in jeopardy, but sources in the authority said it was a factor when the board dismissed Petri in March.
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The following is the full statement from Council President Darrell Clarke:
“We are pleased that the Parking Authority and the City of Philadelphia have reached a resolution of an important matter — $10.8 million reportedly overpaid by the Authority to the school district will not be required to be repaid. The school district will keep these essential funds, as it should.”
“Every dollar or amount of revenue delivered to the school district should remain with the school district, so it can deliver on its primary responsibility of educating every child in its schools. Whatever the nature of this dispute, the only thing that truly matters is educating our children, and ensuring the District has the resources it needs to do so.”
“We commend the new leadership of the Parking Authority for reaching this joint agreement to leave the money with the school district where it belongs, and hope it signals a new era of accountability to Philadelphia residents and their schoolchildren.”
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