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Pennsylvania school district faces bankruptcy amid budget deficit

The Chester Upland School District, which has been struggling with financial and academic problems for decades, is on the verge of bankruptcy and cannot make payroll, state and local officials have said.

Many schools in the US state of Pennsylvania are on the brink of collapse due to the state government’s failure to pay subsidies.

One of Pennsylvania's poorest school districts said it cannot afford to pay its teachers and staff amid a state budget stalemate, according to the Associate Press.

The Chester Upland School District, which has been struggling with financial and academic problems for decades, is on the verge of bankruptcy and cannot make payroll, state and local officials have said.

Teachers and support staff, including bus drivers, secretaries and janitors voted Thursday to continue working even if they are not paid.

“The thought of it is very scary,” said John Shelton, 60, dean of students at the district’s only middle school and a 23-year employee. “It’s mind-boggling because there’s truly uncertainty.”

Chester Upland’s current fiscal crisis, however, is more serious, said Jeff Sheridan, a spokesman for Pennsylvania Governor Tom Wolf.

“They are in such dire financial shape right now,” he said, “unless something drastic happens. . . the school district is in danger of not existing.”

The school district is facing a $22 million budget deficit that could grow to about $46 million without major intervention, Sheridan said.

The governor’s spokesman blamed several factors, including local mismanagement and state cuts in education spending under the previous governor.

The school district's average household income was less than $27,000 in 2012, placing it in one of Pennsylvania's poorest districts, according to state data.

The district is about 20 miles (32 km) west of Philadelphia and serves approximately 3,300 students, most of them low-income.

 


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