Philadelphia reform panel will borrow $300 million to close school district deficit

From The Philadelphia Inquirer: The Philadelphia School Reform Commission has decided to borrow $300 million to bridge a massive deficit, emphasizing the bond deal will probably be the district's last for several years. The commission approved a five-year financial plan for the district as a prelude to the bond sale to cover a deficit of more than $200 million in the 2012-13 $2.5 billion budget, as well as a shortfall anticipated in the fiscal year that begins next July 1. Thomas E. Knudsen, the school district's chief recovery officer, says if the district does not make major changes and continues on its current course, it could be facing a potential shortfall of $1.35 billion over the next five years.