
Philly's back on track, but now what happens?
House Bill 1828, which allows the city to raise the sales tax temporarily and to delay some payments into the pension fund, will allow the city to balance the budget.
Without the legislation, Mayor Nutter was threatening to send layoff notices to 3,000 city workers and slash city services.
So, where do things stand today for the average Philadelphian? Here are the answers to some of your budget questions:
Q: I got a call that my trash will only be collected twice a week. Is that still happening?
A: No, all those cuts have been canceled. Trash collection will continue as usual.
Q: And my library and recreation center will stay open?
A: Yes. Libraries, parks and recreation centers, which would have basically lost all funding, should be fine now.
Q: I'm thinking about buying a television. Do I need to go buy in the 'burbs because of the sales tax hike?
A: Not quite yet. It's going to take a little time to implement the sales tax, at least 20 days, according to city Finance Director Rob Dubow. So Oct. 8 is probably the earliest that this take effect. But if you have any big-ticket purchases, now is the time to buy them.
Q: When the sales tax rises, how much more will things cost?
A: The sales tax is 7 cents on the dollar, with 6 cents going to the state and 1 to the city. After the increase, it will be 8 cents, with 2 going to the city. So on a $100 item, you're currently paying $7 in sales tax. After the increase goes into effect, you'll pay $8.
But essentials like food, clothes and medicine are not taxed in Pennsylvania.
Q: I'm a city worker. Does this legislation in Harrisburg mean that my job is safe?
A: Well, for the time being, yes. Nutter did not send out the threatened 3,000 layoff notices yesterday. But more cuts and layoffs could happen in the future if the city can't get union contract savings, or to make up for lost sales-tax revenue.
Q: So, now that this is over, the city will just go back to normal, right?
A: Mostly, but the delay in passing the legislation has had an impact on the city finances. The city has already lost two months of sales-tax revenue - worth $20 million. Last month, Nutter made some cuts to deal with that, including delaying a class at the Police Academy and reducing hours at the 3-1-1 Call Center. Those cuts won't be reversed.




