Philadelphia revenues below expectations

The City of Philadelphia is facing even deeper department budgets in the second half of this year. That’s because tax revenues are way below what the city expected.

The City of Philadelphia is facing even deeper department budgets in the second half of this year. That’s because tax revenues are way below what the city expected. [audio:100218TMBUDGET.mp3]

The latest revenues numbers are troubling for the city’s Budget Director Steve Agostini. He says adjustments will have to be made, but the city has already cut to the bone.

Agostini: You know it’s going to be challenging.  Expenditure reductions are things that we have done over the past year so it will be difficult doing more of that.  We’ve done some revenue increases so that will be difficult. We’re still working on a plan.

Agostini is not getting specific about what will be done, but he says everything is on the table, including budget cuts to city departments and increasing taxes to cover the shortfall. The spending reductions will be factored in the city’s next budget year which begins July 1.