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The School District of Philadelphia has adopted a $4.6 billion operating budget for the 2026-2027 school year amid a $300 million structural deficit.
The board unanimously approved the operating budget, while passing the capital budget in a 7-1 vote. Board member ChauWing Lam was the lone no vote. Wanda Novalés was absent during the meeting.
Superintendent Tony B. Watlington has said the deficit is due to “chronic underfunding and the loss of federal COVID-19 relief funds.” To cover the gaps, a preliminary budget passed in March ordered $50 million in classroom cuts and an additional $169 million in central office cuts.
This would freeze, cut or reassign about 265 positions throughout the district, but would prevent teacher layoffs and cuts at schools set for closure under the controversial facilities plan. However, it will likely lead to an increase in overall class sizes, which research suggests could impact academic performance.
Below is a detailed breakdown of cuts:
Freeze central office vacancies, cut approximately 130 vacant central office positions and reduce additional central office costs – $30 million savings
Reduce contracts and low return-on-investment programs – $36 million savings
Implement budget efficiencies – $103 million savings
Eliminate approximately 220 building substitute positions – $13 million savings
Reassign approximately 340 school-based positions with all impacted employees moved into other vacant positions, in accordance with collective bargaining agreements – $43 million savings