The Reality of Philadelphia's Future

I watched the live noon 6ABC telecast of Mayor Michael Nutter's address to the City of Philadelphia, America's 5th largest city, regarding the newly announced $1B shortfall in the budget of the city's 5 year plan. The day after the America elected it's first black president, Nutter had a closed door meeting with the entire City Council (which the Inky/DN have sued to release). The full text of the address is online here for those who missed it.

Nutter addressed the $119M budget surplus when he stepped into office 10 months ago, but the recent economic downturn turned recession has sent the world's stock markets plunging to 1/3 to 1/2 in value. He noted how cities like NYC, LA and Chicago are undergoing similar budget restrains. In regards to Philadelphia's budget problem, he outlined the current situation. There is currently a $108M+ gap in this fiscal year's budget which will only grow with each year for the next five. The City's annual budget is $4B, but 58% of that budget is locked in leaving just $850M in discretionary spending for the rest of the year from which $100M in savings has to be found.

Here's what Nutter is asking of his staff, City employees to address 55% of the gap:

1. Asked City Council to suspend tax reductions into mid-2015, maintaining $220 million in tax revenue during the period.
2. Requiring exempt City employees earning more than $50k to take five furlough days without pay this year and again next year.
3. The Mayor, his staff and his cabinet will take salary cuts along with furloughs

The remaining 45% of the gap will be made up in program cuts, but stressed that there will be no police or fire layoffs, no fire station closings and no reduction in emergency medical services.:

1. Cuts in police overtime and not fill 200 vacant positions, Town Watch will have 50% cuts, with cuts in fire overtime a reduction of 5 engine companies and 2 ladder companies
2. 11 library branches will be closed and Sunday hours reduced elsewhere
3. 62 of 73 outdoor pools and 6 of 7 indoor pools will be closed in the summer, in winter 3 ice rinks will be closed unless private monies can be found
4. less money for streets resurfacing, no residential streets cleaning, no snow removal of tertiary streets, no bulk/tire collection.
5. 220 layoffs in the City and 600 vacant positions will be unfilled; eliminate 1,660 seasonal part-time jobs and 570 contractual non-city jobs

He also noted the positive change that will come in the coming months:

1. 200 more police on the streets in January
2. More money for schools via increased parking revenue
3. Wage tax decrease due to gaming revenue
4. The new 311 system

He also announced his intention to President-elect Obama for help for America's urban populations as well as putting together a proposal for the U.S. Treasury Department to use some of the $700B bailout plan to help the cities of America recover.

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Wake up Philly, it's time to live in the real world.