City to Borrow $50m to Open Schools

Philadelphia Mayor Michael Nutter announced Thursday that the City of Philadelphia would take out a $50 million loan in order to ensure that the city's schools open on time.

"I am committing to our students, parents and citizens today that schools are going to open on time and safely on Sept. 9th. Children are going to continue their education," Nutter said.

Philadelphia School District Superintendent William Hite announced last week that he was unsure if the district's schools could open on time due to safety concerns.

The $50 million will be used to hire back around 1,000 district staff who help school safety such as lunch monitors and assistant principals.

"As I stated last week, the $50 million will enable us to provide many crucial school functions and restore critical staff positions, including assistant principals, counselors and hallway, recess and lunch monitors," Hite said.   "This money will also help us to avoid combining grades in single classrooms, offer extracurricular activities at all schools, and ensure adequate maintenance and custodial services. In short, this will get us closer to keeping the elements that make our schools quality educational facilities."

Hite added, "I appreciate the Mayor’s leadership and support in working through these extreme financial challenges. I look forward to our continued collaboration with the Mayor, City Council, state lawmakers and labor partners in developing a long-term financial solution to provide Philadelphia with a high-quality and high-performing school district," Hite said in a statement Thursday.

Mayor Nutter said that the city will use a pending city council bill that raises the sales tax to pay off the loan.

"If Council approves a sales tax bill consistent with what’s been approved in Harrisburg, or any other legislation, it will give the City access to $15 million a year to repay the borrowing," Nutter said.  

Nutter went on to say that school children did not create the city or state's pension problem, and they shouldn't be hurt by politics.

"Our school children did not create the City pension problem nor are they responsible for the School District’s funding problems," Nutter said.  "They should not suffer as we try to resolve it. They should not be pawns in a political chess match of leverage and strategy."

Nutter added, "On Monday morning, Sept. 9, I expect that we’ll all be ringing school bells at schools all across the City with Philadelphia school children, their teachers, administrators and other staff. We’re going to kick off a great year of enrichment and discovery on that day."