Philadelphia officials to draw up budget

It’s time for Philadelphia officials to draw up a city budget again. The city has turned one budget in to its state-created fiscal watchdog.

It’s time for Philadelphia officials to draw up a city budget again. The city has turned one budget in to its state-created fiscal watchdog. But that five-year plan depended on state lawmakers approving pension plan changes and allowing the city to raise its sales tax. The Pennsylvania Intergovernmental Cooperation Authority approved the city’s budget under condition that the state approve the pension and tax changes by last Saturday.

Listen:
[audio: 090814lfbudget.mp3]

PICA Executive Director Uri Monson the city must turn in a revised 5-year plan that does NOT include items yet to be approved by the General Assembly.

Monson: As of August 16th, the city has 15 days to put together a revised plan which does not include the new authorities from the state. It would essentially include many of the things the Mayor’s been discussing over the past few weeks including severe cuts and layoffs.

That could mean cutting hundreds of jobs in the police and fire departments. Reducing trash pickup is another unpopular move Mayor Michael Nutter has said he might have to make. The state House has approved the pension and sales tax moves, but the Senate has not.

After the city delivers its revised budget plan, PICA has 15 days to approve or reject it.