Nutter asks vendors 'to work with us' as city slashes payments
Mayor Nutter today said the city has stopped paying most of its bills until the state budget situation is resolved in Harrisburg. The city's cash will be used only for employee compensation, debt service and emergencies. All new city building and repair projects will also be under "stringent review," Nutter said.
Nutter asks vendors 'to work with us' as city slashes payments
Catherine Lucey & Chris Brennan
Mayor Nutter today said the city has stopped paying most of its bills until the state budget situation is resolved in Harrisburg. The city's cash will be used only for employee compensation, debt service and emergencies. All new city capital projects -- building and repair jobs -- will also be under "stringent review," Nutter said.
Nutter and City Council have asked the state General Assembly to approve two changes key to closing a $1.4 billion deficit in the city's five-year spending plan – a 1 cent increase in the sales tax for five years and some changes to how the city pays into its pension fund. Those two measures would give the city $250 million in new money and savings for the fiscal year that started on July 1. Without approval of those issues, Nutter said the city’s cash flow is in peril.
"If they are approved in the very near future, the city will be able to avoid this cash crisis," Nutter said.
State lawmakers have been battling over the their own budget for weeks, with Republicans staunchly opposing any tax hikes to deal with a $3.2 billion deficit. Gov. Rendell has proposed a temporary 16 percent increase in the state's personal income tax, a notion that has not found strong political support. That standoff continues today as state House Democrats are expected to try to pass a $29.1 billion budget that leaves unanswered how to fund $1.3 billion in higher education issues.
Nutter said said he hopes city vendors understand that the city is stuck waiting for the state budget impasse to be resolved. He asked those businesses to "work with us" and believe the city will eventually pay up. "We have thousands of vendors," Nutter said. "Everyone is going to feel the impact of that -- small, medium and large."
The city, which has $197 million on hand right now, "can't go into the market to borrow money because we can't demonstrate the ability to pay" because of that impasse, Nutter added.
City Councilman Curtis Jones Jr. joined Nutter at his City Hall conference today. "You know the day they suspended payments to vendors, it's serious," Jones said. "We stand as one with the mayor."
Just heard a rumor that city employees may be the next ones to go without a check.— Nick19128
PREYZEL LOGIC: Vendors work with us? When the customer does not pay a water bill for two months they are sent a shut off notice! What then should the customer do say "City Work with Me"??? I will pay you later when I get the money! That ain't happening.....In Supermans Fortress of Solitude the water is frozen solid and bring crytal clear thoughts...but this absolute pretzel logic brings on a major brain freeze.- How about the meter maids who do nothing but sit around drinking coffee all day and handing out tickets? Too bad Nutter decided the Casino revenue would be of no help to Philadelphia. Too bad he didn't support the formation of 1000+ jobs and benefits. To bad the next election for mayor is years away.— PhillyS1980
Comment removed.- Eliminate all deputy mayors, their staffs, and layoff at least half of the exempt employees (non civil service,no need for them). Let’s not forget the overpaid consultants hidden within city contracts. Lots of money to be saved.— loue
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- How much money would the city save by disolving the idiot do nothing city council and their call girl assistants?— spj108
- I recently asked the PPA to 'work with me' and that I was 'suspending payment'. They laughed and booted my car.— beezer77
- The City of Philadelphia better get its Act together and collect the money it is owed before it dare think of raising taxes on the poor honest people who do pay all their taxes.— xmar
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- now this story - i hope that any vendor that enables this madness to continue does not get paid and goes under. don't enable bad behavior and it will stop.— give me liberty or death
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CleanupPhilly for Mayor! Seriously!— ZOSO- since you are not allowed to leave comments on anything controversial i have to comment on the "Alleged pool racism unsettled camp leader" - "This situation is very, very personal for me," Wright, 42, executive director of Creative Steps Inc., said in a sometimes tearful interview this week. "I was mistreated as a child. I don't like to see children mistreated at all." - what about the city mistreating kids all the time. closed summer pools yet the council gets paid for taking off during the summer? the schools just push the through like cattle. yet she is going after a swim club because she sees $$. here's a hint clean up your own home (the city) first.— give me liberty or death
- hmmm, the city is asking vendors and people to be patient because they can't pay their bills on time, while houses are being foreclosed on and people losing their jobs because of the state lawmakers? Why does the state get a "pass" while people that live in the state that have to pay their mortgages and tax bills dont? Just remember this when it comes time to vote!!— Angel R.
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David Gambacorta spent a small eternity writing about cops, drug dealers and serial killers. Now he’s writing about power and politics – which sometimes reminds him of the old crime beat. He joined the Daily News in 2005. And yes, he knows you’re not quite sure how to pronounce his last name. E-mail tips to gambacd@phillynews.com
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Jan Ransom, a native New Yorker, joined the Daily News in 2010 after graduating from Howard University. She has since written about the difficulty of filing police complaints, tax deadbeats and life after violent home invasions. She joined the Daily News City Hall Bureau in 2011 and has plunged headfirst into reporting on administration budget battles and City Council shenanigans. E-mail tips to ransomj@phillynews.com
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Sean Collins Walsh is from Bucks County and went to Northwestern University. He joined the Daily News copy desk in 2012 and now covers the Nutter administration. Before that, he interned at papers including The New York Times, The Dallas Morning News and The Seattle Times. E-mail tips to walshSE@phillynews.com
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