Philly schools have to go begging to Wall Street

Chief Recovery Officer Thomas Knudsen is resigning. He ran the show in Philly. Former head of former head of Philadelphia Gas Works, his loot-and-burn job was to cut $100 million or more from the school budget while protecting high-paid consultants and execs.

According to the Daily News, Philly's school district is "broke" and forced to go begging to Wall Street for a $300 million loan to pay its bills. But this hasn't stopped them from giving fat raises to non-union administrators and consultants while asking union teachers for give-backs. 

"Union leaders were surprised by the news."

 What?

"It seems immoral to me," said George Ricchezza, 1201 District Leader for 32BJ SEIU. The union agreed this summer to forgo raises for four years and contribute $100 million back to the district.

"If I would have known prior [about the raises], I would have had a more intense conversation about it so I could absorb the thinking of the district," Ricchezza said of a meeting he had with Hite last week. "It's going to be difficult for our members to understand this."

You bet it will. 

Also, check out Boston Consulting Group's role here.