Philadelphia's budget depends on state

    As Pennsylvania lawmakers struggle to resolve a revenue shortfall of nearly $3.3 billion dollars, Philadelphia’s own budget woes become more dire.

    As Pennsylvania lawmakers struggle to resolve a revenue shortfall of nearly $3.3 billion dollars, Philadelphia’s own budget woes become more dire. The city is relying on legislation in Harrisburg that would allow for a sales tax- increase, but the clock is ticking.

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    [audio: 090710spbudget.mp3]

    Philadelphia’s budget calls for a sales tax hike starting on August 1st. But state lawmakers may not have even balanced their own budget by then. Mayor Nutter says the city could be looking at layoffs and program cuts.

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    Nutter: Those are very serious implications for us and I know Harrisburg has to go through its process, in the meantime, we have to run a city.

    Governor Rendell and his Democratic allies in the Legislature are calling for a mixture of cuts and tax increases. But Republicans are resisting tax hikes.

    Chester County Republican Senator Dominic Pileggi says the city’s budget needs are taking a back seat to the state budget battle.

    Pileggi: I think that people are still trying to find a way to assist the city, I am not pessimistic yet, but it is not something that is not going to be easy to accomplish.

    Some of the proposed state cuts would mean even less money for the city.

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