Editorial: Stronger medicine

A new report comparing Philadelphia's response to its budget crisis with that of other cities makes you wonder why Mayor Nutter isn't being tougher about cutting spending.

The Pew Charitable Trusts' Philadelphia Research Initiative studied 13 cities, from Boston to Los Angeles, to examine how they're coping with huge budget gaps. Their problems are similar. The recession has reduced their tax revenue, while the stock market's plunge is forcing them to contribute more to pension funds.

Yet only four cities - Philadelphia, New York, Atlanta, and Columbus, Ohio - are proposing increases in major taxes.

Only New York is proposing increases in two major taxes - sales and property. Philadelphia would have been in this category, but Nutter abandoned plans for combined increases in the sales and property taxes in favor of City Council's proposal for a five-year hike only in the sales tax.

Five cities are getting by without tax increases. Others, such as Chicago and Boston, plan to raise minor levies such as parking and amusement taxes.

Philadelphia's budget gap is large, but no worse than many other cities'. Its shortfall is equal to 11 percent of the general fund, comparable to New York, Atlanta, Los Angeles, and Chicago.

Baltimore and Seattle have smaller shortfalls - only 5 percent of their general-fund budgets. Detroit was the worst of the cities surveyed, with a budget gap equal to 20 percent of its general fund.

Cities must balance their budgets either by raising taxes or cutting spending. Outside Philadelphia, the cuts are much deeper.

New York Mayor Michael Bloomberg is proposing to lay off 3,742 employees. Boston plans to lay off up to 555 city workers, Detroit 334. Los Angeles is laying off 1,000 employees. Chicago Mayor Richard Daley has warned of 1,100 layoffs unless the city gets concessions from its unions.

Philadelphia laid off 47 workers last fall. Nutter's budget would cut 250 more positions, with up to 74 more layoffs. Layoffs are painful, but the town that practically invented patronage jobs should be able to find more trims, as its counterparts are doing.

Some other cities are trying furloughs and wage freezes (Nutter has budgeted no salary increases for unionized workers for five years, though negotiations aren't finished). Atlanta saved $11.5 million by forcing nearly all of its employees, including police and firefighters, to work a 36-hour week and take a 10 percent cut in pay.

There's a message in the Pew report for Philadelphia's unionized employees, too: Workers in other cities are giving back in this crisis to help save even more of their colleagues from being laid off. Concessions are also painful, but they're necessary.

Philadelphia differs from other cities in one significant aspect: It's the only city required to submit a five-year balanced budget.

Other cities have more flexibility to balance their ledgers with one-year budget gimmicks. Philadelphia's plan, said Philadelphia Research Initiative Director Larry Eichel, "does require it to face the music now."

The crisis is everywhere, not just in Philadelphia. But this study shows that other cities are doing more to cut spending.