CHESTER, Pa. (CBS) - The Chester-Upland School District is in financial trouble -- again.  Only this time, they're blaming the state for the problem.

After more than a decade of financial oversight by the Commonwealth of Pennsylvania, the district was declared financially sound in 2007 when Harrisburg enacted a law creating a state empowerment board which called the shots in Chester-Upland until last July.

Over those three years, elected officials insist, things went bad again.

"To be perfectly honest with you, it's a disaster," says Thomas Padden, a financial consultant brought in by the school board (far left in photo).  "When they took over we were in a good financial position.  And now, as you can see, we have a lot of problems."

The biggest problem, he says, is an immediate $2.8-million shortfall that's likely to grow to $5-7 million by the time officials do all their checking.

School board president Wanda Mann (seated at center) has vowed to keep educational programs a top priority and to not raise taxes to fix the mess.

Reported by David Madden, KYW Newsradio 1060.