Philadelphia toughs it out, budget woes lead to service cuts

Philadelphia’s budget woes mean more cuts to services and, potentially, people in the government.

Philadelphia’s budget woes mean more cuts to services.

The city’s finance director Rob Dubow says the problem is the economy and, among other things, real estate tax collections are $15-million under projections. Dubow says some taxes are up, creating a $13.5-million net deficit.

He says the numbers he’s put forth are not part of an effort to force city council to pass a soda tax.

Dubow:
We’re not doing this to pressure anyone; we’re doing this to manage the government with the resources that we have.

But things could be worse, according to budget director Steve Agostini.

Agostini:
And I think it should be said that we are not being hit as severely as other communities where people are walking away from homes.

The revenue shortfall means a hiring freeze and a 2% budget cut from agencies under the mayor’s control. Agostini says that will result in service cuts, which may or may not be noticed by the public.