A Philadelphia-area school district sued the state of Pennsylvania Thursday, seeking enough money to keep running for the rest of the year.
Gov. Tom Corbett, who was named as a defendant in the lawsuit, rejected a request from the Chester Upland School District last month for an advance on state funding payable in June, The Delaware County Daily Times reported.
The district includes the city of Chester, one of the poorest municipalities in the region, and two small neighboring towns, Upland and Chester.
In a 22-page complaint filed in federal court, the district said it has a "cash-flow problem" that has left it unable to pay teachers and other staff or vendors. Officials said they would have to close schools to keep going.
Chester residents held a vigil Thursday night to support the schools, WPVI-TV, Philadelphia, reported. Officials said the district has only $100,000 on hand.
The district has a long history of problems. The for-profit Edison Schools company was hired to manage the district after it was named the worst performing in the state in 1994.
Edison failed to bring significant improvement, and the state terminated the contract a few years later. Chester Upland officials say debt from the Edison era has contributed to its financial woes.