Phila. tax revenues rose in January, controller says

You want the good budget news or the bad budget news?

The good news is that city tax revenues climbed in January, according to a new report from the city controller, reflecting an ongoing stabilizing of the city's finances.

But the bad news is that after three long years of fiscal decline, the city budget isn't out of the woods yet. Recent financial data released by the city show that the Nutter administration is set to end the fiscal year with just $13.5 million left in its coffers.

That's a lot lower than the nearly $200 million cushion the city would need to meet guidelines from the Government Finance Officers Association.

According to the controller's report, Philly received $231 million in tax revenues in January, the highest monthly number for the current financial year.

City Finance Director Rob Dubow said the number was in track with city predictions, which have shown rising tax revenues this year.

Mayor Nutter is set to make his budget address on Thursday. Dubow said that residents should not expect the severe cuts or tax increases from recent budget cycles.

"It's not the kind of budget we've seen in the past couple of years," Dubow said. "We're not seeing our revenues fall off a cliff."

But Dubow stressed that the city still faces some big financial question marks, like the potential for cuts in the state and federal budgets, as well as the looming $400 million-plus deficit in the school district.

The controller's report also showed a decline in the latest unemployment numbers. Unemployment in the city was at 10.7 percent in December, down from 11.2 percent in November.