A bill granting Philadelphia the ability to impose a temporary one-percent sales tax and defer its pension contributions passed the Pennsylvania Senate this afternoon by a 38 to 9 vote.

Philadelphia Mayor Michael Nutter issued this statement tonight.

The main goal of this legislation is to provide $700 million in financial recovery for Philadelphia through a temporary increase in the sales tax and changes to our pension payments.  If approved by the House these dollars will maintain the financial health of the City and mean that we will avoid the devastating consequences of implementing Plan C.

The bill returns to the House to consider the Senate changes. A few of them will set the stage for one a nasty labor negotiation between Philadelphia and its municipal workers. The Senate wants to require T the city to freeze its current pension plans and lower contributions for new employees.

House leadership staffers say they’re reviewing the Senate amendments, and likely won’t bring the bill up for a vote until next week at the earliest.