by  KYW's John Ostapkovich

The School Reform Commission in Philadelphia has approved a preliminary budget that still has a deficit, but it's a heck of a lot smaller than a year ago. 

The lump sum budget request that will head to City Council next month is for a bit more than $2.3 billion and anticipates revenue of a bit less than $2.3 billion.

Director of Budget Wayne Harris says this time last year the schools were looking at a carryover deficit of $37 million and a forward-looking shortfall of $144 million:.

"The comparable figures this year are $21 million for fiscal year '08, the current year, and $18 million for the coming year for a total of $39 million."

Outgoing interim schools CEO Tom Brady blames the deficit on cyber-schools siphoning off students and funding, the effect of a down stock market on refinancing capital bonds and higher energy costs.