Tax hike faces long odds with state
Tuesday, May 26th, 2009
While Philadelphia City Council and Mayor Michael Nutter stand united behind the city's budget, they could have a tough time selling the deal in Harrisburg. Several items need state approval, but the city's fiscal needs could end up becoming a pawn within the larger state budget negotiations.
Listen:
Audio clip: Adobe Flash Player (version 9 or above) is required to play this audio clip. Download the latest version here. You also need to have JavaScript enabled in your browser.
The sticking point could become the sales tax hike, which needs the greenlight from Harrisburg. But the state itself is facing a more than $3 billion dollar deficit. And Governor Rendell has proposed new taxes, that are unpopular with Republicans. Jake Corman is a Republican State Senator and leader of the Senate Appropriations Committee. He says getting the sales tax approved won't be easy.
Corman: We'll see, we'll work with it, I would have preferred the mayor's original proposal but the Council didn't support it and we'll have to live with what we have but obviously this is a much harder sell.
Senator Anthony Williams is a Democrat from Philadelphia. He puts the odds at fifty-fifty of the General Assembly approving the sales tax hike.
Lawmakers have a goal of reaching a budget deal by the end of June. But with such a large budget gap, negotiations could drag on into the summer.