Pa. District’s Fate Debated in Court

Chester-Upland’s woes spark lawsuit by state seeking receivership.

A hearing scheduled to resume this week could determine whether the state of Pennsylvania will for the first time put one of its school districts into receivership.

Gov. Edward G. Rendell, a Democrat, essentially wants a judge to declare that the Chester-Upland school district should be managed like a bankrupt company. That would mean a court would appoint and supervise someone to manage the 4,700-student system’s business.

Since 1994, Chester-Upland’s finances—and as of 2000, all of its affairs—have been overseen by a control board whose three members...