UPDATE: SEPTA and the Philadelphia School District have said that there is a "basic framework to continue providing Transpasses for the schoolchildren of Philadelphia for the upcoming school year." They are hammering out a one-year agreement which would keep giving 60,000 kids free public transportation.  A final agreement should be worked out in the next few weeks, they said.
UPDATE: In a nutshell: the full-day kindergarten issue has been solved.  Federal Title I dollars will be used to fund the program; a solution that Superintendent Arlene Ackerman said only came together Friday afternoon.  She said this was not an option before this week.  This is a permanent fix, but will mean that money has to come from other things typically funded by Title I money, which have historically included professional development, summer programs, reduced class size initiatives, etc.  No decisions have been made on what to cut.
BREAKING: Parents briefed by the superintendent this afternoon say the announcement will be the restoration of full-day kindergarten for 2011-12.  The program will be paid for through Title I funds.
EARLIER: Philadelphia School District Superintendent Arlene Ackerman and Deputy Superintendent Leroy Nunery will brief the media at 3:30 on the district's 2011-12 budget, which was adopted Tuesday with deep cuts.  I will live Tweet whatever the announcement is.  Follow here or below.
In a related development, principals today are being given lists of teachers who will receive layoff notices on Monday.  The district has said that it will have about 1,100 fewer teachers next year, but not yet revealed how many layoffs that will mean. Overall, more than 3,700 positions will be lost district-wide. 
Stay tuned.