The Philadelphia School District is trying to balance a $4.6 billion 2026–27 operating budget while confronting a $300 million structural deficit caused by long-term underfunding, rising costs, charter payments, inflation, and the expiration of federal COVID relief. District leaders approved $225 million in cuts, including central-office reductions, contract cuts, building-substitute eliminations, and the reassignment of hundreds of school-based employees. City Council added $48 million, but officials say one-time money is not enough without recurring revenue. The crisis now threatens staffing, class sizes, and long-term facility plans, even as the district tries to protect classrooms and measurable, hard-won recent academic gains.