Monday, March 2, 2015

City On Track to End Year $31 Million in Red

The city is on track to end the fiscal year $31 million in the hole, Budget Director Steve Agostini told City Council members during a briefing today.

City On Track to End Year $31 Million in Red

The city is on track to end the fiscal year $31 million in the hole, Budget Director Steve Agostini told City Council members during a briefing today.

Agostini attributed the downturn to a number of factors, including a decline in the city's expected wage tax revenues and a loss of state funding for social services and police. The overall deterioration was offset somewhat by better than expected revenues for the business privilege tax and the real estate transfer tax.

The budget office has already asked city departments to look for ways to cut 7.5 percent from their budgets for FY11. Agostini said some cuts may start during this fiscal year, but he did not detail what form they would take. He stressed that the city is closely reviewing every hire and expenditure to try and find savings.

Clay Armbrister, the mayor's chief of staff, stressed that the city still has financial pain ahead despite a turbulant year of budget cuts and tax hikes.

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"We're not out of the woods by any means," Armbrister said.

About this blog
William Bender, a Drexel graduate who landed at the Daily News in 2007, has covered everything from South Philly mobsters to doomsday hucksters. He occasionally writes about local food trucks and always eats everything on his plate, whether it be a bloody rib eye or a corrupt politician. E-mail tips to benderw@phillynews.com
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David Gambacorta, has been a reporter with the Daily News since 2005, covering crime, police corruption and all of the other bizarre things that happen in Philadelphia. Now he’s covering the 2015 mayor’s race, because he enjoys a good circus just as much as the next guy. He’s always looking to get a cup of coffee. Send news tips and other musings on life to gambacd@phillynews.com
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