Compromise means Philadelphia district can meet payroll, open classes this fall

Pennsylvania Gov. Ridge and Philadelphia Mayor Street have reached a compromise that will allow the city school system to meet its payroll and assure that classes begin on time this fall. But for the first time, Street and Ridge also discussed a possible state takeover if they cannot agree within 90 days on a long-term solution to the district's continuing financial crises.

PREVIOUS STORIES: In a major shift, aides to Pennsylvania Gov. Ridge and Philadelphia Mayor Street say a state takeover of the near-bankrupt Philadelphia School District is more likely than ever. Facing a $216 million hole in its budget, the school district has found itself in recent weeks unable to pay its bills. City Hall and Harrisburg have gotten no closer to an agreement. Related article: The governor of Pennsylvnaia will meet with the mayor of Philadelphia to try to reach some kind of resolution to Philly's school budget crisis.

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