City Council panel approves borrowing $30 million for Philly schools

This article was originally published in The Notebook. In August 2020, The Notebook became Chalkbeat Philadelphia.

The city of Philadelphia intends to borrow $30 million more to keep the schools afloat while the District awaits proceeds from the cigarette tax that was finalized Tuesday by the Pennsylvania Senate.

The city borrowed $27 million to help the District meet expenses for the fiscal year that ended in June. It agreed then to borrow $30 million more in September.

City officials also plan to refinance the $27 million in loans from earlier this year.

Refinancing the short-term loans will lock in favorable fixed interest rates instead of the variable rate being paid now, said Rob Dubow, city finance director.

"We did the $27 million borrowing earlier; now there would be a $30 million borrowing. If, however, when we go to market for the borrowing, if it becomes clear it would be cheaper if we re-funded — like taking out a new mortgage — the earlier deal we would do that," Dubow said. "So it gives us some flexibility and the ability to save costs if we can."

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