Click on the image to watch the press conference

Video of yesterday’s budget update by Philadelphia Mayor Michael Nutter. In this 20 minute speech, the mayor said the city now projects another $1 billion budget gap.

This shortfall means that the city believes that over the next five years taxes and other revenues sources will come in lower than expected. Since Philadelphia is required to create a new budget every year that estimates revenues and spending over a five year period, a $1 billion dollar gap can be dealt with but reducing spending $200 million each year.

This latest billion dollar funding gap is on top of the $1 billion gap announcement in November. But recent budget cuts have lowered future spending to eliminate this hole.

In this speech, you’ll hear the mayor layout his plan to help educate the public on the budget process through the use of televised PhillyStat meetings and through four planned citizen budget workshops.
Also, you’ll hear him send a warning to the city’s unions whose contracts are up for renewal this year that the city is in dire shape and things are going to have to change. I smell a nasty fight brewing for later this year.

Useful budget related links