Philadelphia has been under state control since 1998, imposed in the midst of a financial crisis. A School Reform Commission was created to govern the schools. The city schools have been in financial crisis ever since, with the state providing little financial support. Under the current administration of Governor Tom Corbett, the Philadelphia public schools have been stripped to the bone, lacking essential resources. Corbett has slashed the state budget for education while lowering corporate taxes and refusing to tax the corporations that are hydrofracking across the state.

At one point, the state-appointed superintendent was Paul Vallas, who launched an experiment in privatization. The district’s public schools outperformed the privately run schools. Currently, the business and civic leaders of the city have advocated for more charters, even though several of the city’s charters have been investigated for financial misdeeds. They seem sure that privatization is the cure, despite the absence of evidence for their belief.

The School Reform Commission, trying to close the deficit created by Governor Corbett, canceled the teachers’ contract unilaterally. This follows on thousands of layoffs. The SRC will increase teachers’ payments to their health care and phase out benefits for retirees. Salaries will not be cut. State and city officials defended the action, saying it would save money and help balance the budget. It is not clear whether the SRC has the legal authority to cancel the contract unilaterally.