City Controller Alan Butkovitz responded to a recent downgrading of Philadelphia School District's bond rating by Fitch Ratings at a press conference yesterday.
The school district's bond rating is now one of the lowest in the nation.
Butkovitz said one reason for the lower rating was that, "contrary to the school district's statements and reports," it has not balanced their budget for the past four years.
He added that the School District received $300 million in deficit funding bonds, intended to be "a bridge towards future fiscal stability," when the state took it over in 2002. Four years later, however, it may experience a deficit of over $150 million.
"I believe the school district is at a critical juncture, but there is still time to get the school district's financial house in order before it's too late," Butkovitz said.
Among several other recommendations for future oversight of the school district's finances, Butkovitz suggested that he be granted the same pre-audit authority that he currently has over other city departments.
He also called for "an immediate commitment from the school district to start cooperation with the controller's office."
