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Philadelphia’s school commission borrows $300 million to pay its bills

Home - by - November 9, 2012 - 19:00 America/New_York - 11 Comments

Philly.com

The Philadelphia School Reform Commission moved Wednesday to borrow $300 million – money it needs just to pay teachers, heat buildings, and buy books for the rest of the school year.

Chairman Pedro Ramos made it clear that the SRC’s back was to the wall and that the state of its finances constituted “dire circumstances” for the district.

“I couldn’t be more unhappy that we’re in a situation where it’s necessary to do a borrowing for the purposes of merely paying our bills,” Ramos said.

The bond sale the SRC unanimously authorized at the Wednesday special meeting comes with a hefty price tag – an additional $22 million in debt service annually for 20 years, beginning in 2014.

It’s the second time in a decade the district has had to borrow money to keep schools open – the last deficit financing occurred in 2002 – and officials say the school system’s credit card is maxed out.

“Some people think the solution is that we can just keep borrowing, and we really can’t,” Ramos said.

 

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» 11 Comments

  1. Wyatt, Insensitive Progressive Jerk

    November 9th, 2012

    Sounds like they have a problem, with an emphasis on the word “they.”

    Thumb up +7

     
  2. Unneutral

    November 9th, 2012

    How telling when those that teach our children can’t even master the simple idea of money in, money out.

    Noteworthy Comment Thumb up +10

     
  3. serfer62

    November 9th, 2012

    “Some people think the solution is that we can just keep borrowing, and we really can’t,” Ramos said.”

    Yes You Can…Forward…Hope & Change

    Noteworthy Comment Thumb up +11

     
  4. AbigailAdams

    November 9th, 2012

    “…. and we really can’t” hahahahahahaha!

    Thumb up +2

     
  5. I Luv Bacon

    November 9th, 2012

    Bwa ha ha ha
    Finally. A feel good story.

    Kiss my smelly white ass, Philly Oflunkies.
    Keep the hits coming- just remember, YOU won…again

    Thumb up +7

     
  6. pissedpatriot30

    November 9th, 2012

    It’s all REAL funny until they raise our taxes. Then what do we do?????

    Thumb up 0

     
  7. Xavier

    November 9th, 2012

    No worries. Philly kept PA blue and will be amply rewarded with your money, and Barry will get to “save the schools for the children”. Bend over and take it like a man.

    Thumb up +4

     
  8. Wyatt, Insensitive Progressive Jerk

    November 9th, 2012

    @pissedpatriot30: “It’s all REAL funny until they raise our taxes. Then what do we do?????”

    Good question. You will pay the increased taxes. The government will then piss away any increased tax revenue, continue to borrow money, and demand still more tax revenue. You will pay the increased taxes until you can’t pay anymore, then the whole thing collapses.

    This is what just over 50% of voters basically elected to do last Tuesday. And probably the Philadelphia School Reform Commission is just one of the first of many governmental agencies who will be crying the same river.

    When one realizes where this course of action will inevitably end up, one may as well have a few yucks while continuing to try to prevent disaster.

    Thumb up +5

     
  9. scr_north

    November 9th, 2012

    Yep, I’ll just bet the money they borrow is going toward books. I wonder how much stimulus money this guys got for the union last time.

    Thumb up +3

     
  10. ghastly

    November 10th, 2012

    I’m not so sure it’s possible for teachers as a whole to teach anybody anything worthwhile anymore. dumb dropouts. dumb graduates. dumb college grads. dumb teachers: agreeing to pay based only upon your years of service. wow, gym teacher and calculus teacher get same pay. those participating teachers are genius!

    Thumb up +1

     
  11. webby h

    November 10th, 2012

    years ago, i read daily Boortz’ commentary, but at the top of his page, he had the quotation that stated [paraphrase] when the people can vote for themselves stuff from the public treasury, th th that’s all , folks

    he also prominently displayed the quotation from H.L.Menken, “Now’s the time to begin slitting mens throats”

    Thumb up 0