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As part of the agreement creating the School Reform Commission, Pennsylvania Gov. Mark Schweiker is asking for $75 million from the state to help city schools. [Andrew Margolies/DP File Photo]

The School Reform Commission took another step yesterday toward improving Philadelphia's failing public schools, but meanwhile, the city and the state are working to get the district any necessary finances -- even if it means cutting jobs.

Yesterday, the commission released the names of 10 firms that are finalists in the selection process for education management services in Phase 2 of the commission's goals. Firms chosen will work in partnership with local community groups to help run certain schools.

"The idea is to have the partnership schools open and ready to go in the fall," commission spokeswoman Carey Dearnly said.

While the final number of partnership schools has not been set, at least 60 schools will be managed by the firms. The commission is also working out exactly how the community organizations will interact with the companies.

Additionally, the names of the nine finalists for management consultant roles for Phase 1 goals were released on March 12, from an original list of 20 qualified applicants. The University of Pennsylvania remains one of the candidates, as does the controversial private education firm Edison Schools, Inc.

If selected, these firms will work on staff development, curriculum review, school climate and technology. The hope is that the first of these services will be in place by the end of this school year. Additional technology, food service, transportation and central office evaluations, among others, will come later, when Phase 2 selections are made.

Also last week, the commission announced that approximately 325 of the school district's administrative positions would be cut, a move that would save the district an estimated $25 million.

The commission "is looking for savings wherever they can find them, with the exception of within the actual schools," commission spokeswoman Heidi Gold said.

The cuts will come from the district's administrative and operational headquarters. Senior managers were asked to identify exactly where cuts could be made, and employees will be notified by the end of the school year.

Meanwhile, the state and city are working toward providing an additional $120 million for the school district. In the Dec. 21st agreement that created the School Reform Commission, Philadelphia Mayor John Street and Pennsylvania Gov. Mark Schweiker promised an annual $45 million from the city and $75 million from the state to help the financially strapped district reach its goals.

But not all members of City Council believe their obligation to provide the $45 million is justified. As the city's legislative body, the council is responsible for approving such budget measures.

"The state asked for help because they're not able to do what the [state] constitution says they should do," Councilwoman Blondell Brown said. "It's absolutely not fair, but these are not fair circumstances, and because the state basically holds the cards, the city is left to do what it can."

Yesterday, the city approved the initial $45 million for Fiscal Year 2002. Council is expected to vote on providing money for additional years next month. Without the city's commitment, the state will not provide its funding.

But despite the planned $25 million in savings and $120 million in funding from the state and city, the commission will still have to cope with a $35 to $55 million yearly deficit over the next few years. The debt has grown from a disparity between increases in spending and city and state support.

"Ideally, the entire gap should be closed with an increase in city and state funding, but that's not possible from a financial or political perspective," commission member and Penn Vice President for Budget and Management Analysis Michael Masch said.

In reality, the additional debt may cause more cuts within the district.

"The commission is still investigating," Gold commented. "It is quite possible that there would be more [cuts] as they continue to do research."

Also on the table for the commission is the hiring of a chief executive officer to lead the district. The commission hopes that its measures will help attain the goals set forth in the original agreement that created the School Reform Commission.

"On Dec. 21., Governor Schweiker put forth a vision. There were concepts but no definite plan," Masch said. "What was also apparent... was that the mayor's idea of improving the schools was quite different from the governor's.... Some of us were appointed by one and some by the other. Now, we need to take the best thinking of both Schweiker and Street and others. We need to try to make this vision work."

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