Philadelphia leaders secure funding to prevent 340 school job cuts

PHILADELPHIA - Mayor Cherelle Parker said Wednesday that Philadelphia has secured a five-year plan to prevent 340 critical school-based job cuts, closing a $300 million deficit for the School District of Philadelphia caused by the expiration of federal Covid relief funds.

Leaders detail how the school jobs were saved

What we know:

Mayor Parker said the city’s financial team found recurring revenue in the city’s five-year plan to cover the $50.4 million needed each year to keep 340 school-based positions. 

"We have been able to find the recurring revenue in our five-year plan that the School District of Philadelphia needed to stave off those 340 school-based cuts," said Parker.

City Council President Kenyatta Johnson, School District Superintendent Tony Watlington, and School Board President Reginald Streater joined Parker in announcing the plan. 

Parker said, "We were committed to ensuring that politics, of any kind were not going to stand in the way of us doing what we're supposed to do as elected representatives for this city. And that is delivering for our school district council."

The plan comes after city council preliminarily approved $48 million in revenue for the school district for fiscal year 2027, which Parker called "essential to us addressing this challenge in our five-year plan." She emphasized that the funding is included in each year of the plan and must be approved by the Pennsylvania Intergovernmental Cooperation Authority (PICA).

Parker also thanked union leaders and advocacy organizations for their support, saying, "Our unions…represent the men and women who make our school district run on a daily basis."

City officials said the plan avoids using property taxes for new revenue, citing state law restrictions and the city’s limited ability to generate revenue.

Dig deeper:

Parker explained the deficit was caused by the expiration of federal Covid relief funds in September 2024. She said, "It became abundantly clear that the $300 million structural deficit facing our school district of Philadelphia, through no fault of its own, that is simply the result of the expiration of federal Covid relief funds."

The city’s leaders said they worked "around the clock" to find a solution that would not rely on a one-time fix. "A one-time contribution of $50 million in one year of our budget was not enough is not enough to sustain those 340 positions," Parker said.

The plan was described as a "massive step" by Streater, who said, "This is a massive step in that direction to have all three parts of the government that relates to public education, along with our great union leaders…because we're all focused on our why and I think we're in line."

Leaders look ahead to long-term funding

What's next:

While the five-year plan saves the jobs for now, Parker said the city still needs to find a new, recurring revenue source for the school district. "We have not identified the source of that revenue, but what we have committed to is ensuring that it happens," said Parker.

Parker and Johnson said they will continue working together and with state lawmakers to secure long-term funding. "Philadelphia is primed to travel to Harrisburg to advocate in unity to ensure that our children get access to the revenue that they deserve so that they can have a first-class school district here in the city of Philadelphia," Parker said.

Officials said a list of specific budget adjustments made to fund the plan will be released Thursday.

The plan also calls for state support to help modernize and rebuild 169 Philadelphia schools. Parker said, "We have a plan to modernize and rebuild 169 schools. And we're coming to Harrisburg United because our children deserve it."

Local perspective:

School staff and advocates welcomed the news. Watlington said, "The 340 cuts, school based cuts are off the table." He added, "This means we can drive forward…with minimal interruptions in schools. And I'm so excited. On behalf of our students, thank you so very much."

Streater said, "I just want to say thank everybody. I'm just so ecstatic today. I can't stop smiling. My cheeks are hurting from us."

What we don't know:

Officials have not yet identified the new, recurring revenue source that will be used to fund the school district in the future. The specific budget adjustments made to support the five-year plan will be released Thursday.

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