District to borrow more to make payroll

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

As Pennsylvania’s budget impasse creeps toward its fifth month, the Philadelphia School District will need to borrow additional money to cover payroll beyond October.

In August, the District borrowed $275 million to get through the first two months of school because of the logjam in the state Capitol – a move that will ultimately cost an additional $1 million in debt service.

Now, District officials say, they need to borrow again – as Gov. Wolf, a Democrat, and the Republican-held legislature continue their stalemate.

District spokesman Fernando Gallard said Wednesday that he didn’t yet know how much the school system would need to borrow or how much the debt service will cost to cover expenses through the calendar year.

The details have yet to be worked out.

Read the rest of this story at NewsWorks