Wednesday, October 1, 2014
Inquirer Daily News

City Council likely to move toward budget plan

It’s expected Thursday that City Council will make some movement toward a budget plan.

City Council likely to move toward budget plan

It’s expected Thursday that City Council will make some movement toward a budget plan.

A number of budget bills will likely receive preliminary approval keeping as many options available as possible, but negotiations are still ongoing, according to several Council members. 

Among the proposals includes Mayor Nutter’s plan to shift to a new property-tax system based on market values known as the Actual Value Initiative (AVI). Nutter wants to collect an extra $94 million for schools under AVI. Critics describe the move as a backdoor tax hike, but the administration has said it is capturing an increase in property values.

While there is still no consensus for any particular plan, sources have said there may be growing support for a package that could include Nutter’s controversial tax proposal and a proposal from Council president Darrell Clarke that would raise money for the schools through a smaller property tax hike and an increase in the Use and Occupancy tax for businesses. We first reported the Clarke compromise last week.

Budget discussions are expected to continue into next week when Council’s plan will likely become clearer.

It is unclear whether the school district will get the $94 million it has asked Council for. The latest figure we have heard tossed around is $85 million.

Sources say Council is now eyeing a homestead exemption that would knock off at least $30,000 from all homeowners’ assessed values. Members expect that they will continue to fine tune minor details related to some relief measures.

About this blog
Chris Brennan, a native Philadelphian and graduate of Temple University, joined the Daily News in 1999. He has written about SEPTA, the Philadelphia School District, the legalization of casino gambling, state government, the mayor, the governor, City Council and political campaigns. E-mail tips to
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Jenny DeHuff is a 2005 graduate of the University of Rhode Island, where she cut her teeth in journalism. A South Philly transplant from New England, she joined the Daily News City Hall Bureau in 2013. For the past several years, she has worked as an investigative reporter exposing corruption in suburban politics, covering sometimes ghastly criminal court cases and following the people’s money and how its spent. In addition to being a dogged news hound, she enjoys reading and writing about travel, animals, Irish whiskey and aviation. E-mail tips to
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