Corbett advances cash to Philly schools, but budget gap is unchanged
Gov. Corbett is authorizing a $265 million advance to the Philadelphia School District.
This is an early disbursement of money that the district was already scheduled to receive, and thus does not erase the district’s $81 million budget gap.
Corbett, speaking at a press conference (see video) Wednesday at his southeastern regional office on South Broad Street, said his goal is to prevent further school layoffs and ensure that city schools open on time on Sept. 8.
"Financially this action will assist the district with their cash-flow needs in the short term," Corbett said. "[It will] reduce the amount that the district will have to borrow, and as a result save the district $4 million to $5 million in borrowing costs."
The District says it asked for this advance in June and has already included any borrowing-related savings in its budget. (Most school districts routinely do short-term borrowing early in a school year to cover costs until tax revenues begin trickling in.)