The Philadelphia School District is counting on aid from Pennsylvania as both the district and the state enter the final days of budget preparation.

In addition to selling buildings, lowering the principal's compensation, and getting the city to borrow money to prop up school programs, the district is still seeking $66 million to achieve the current fiscal year's level of service. The district has called that level of service inadequate.

The district is also proposing that the state government allow a $2 a pack tax on cigarettes. The district's "inadequate" budget assumes that it will be granted this revenue source, which would bring in $40 million in the coming fiscal year.

Moody's Investors Service has the district's underlying rating of Ba2 on review for a downgrade. Moody's review doesn't affect its Aa3 rating of the district's debt, which stems from its participation in the Pennsylvania Fiscal Agent Agreement Intercept Program.

Both the district and the state start their new fiscal year on July 1.

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