City Controller Alan Butkovitz is today sending a letter to the Pennsylvania Intergovernmental Cooperation Authority, which raises two issues he says the oversight agency should consider as they review the city’s “Plan C” budget.
Butkovitz argues that the city can't zero out funding for the court system in the plan and that the cuts to public safetey are irresponsible. You can read his letter here.
The city’s original budget plan relied on a temporary sales tax increase and some changes to pension payments -- worth $700 million over five years. But both those moves require state approval, which has not been granted. Due to the delay, PICA required the city to submit a backup plan that eliminated those funds.
PICA will vote Friday on what is known as “Plan C,” a budget that would lay off 3,000 city workers -- including police and firefighters -- and slash services. The city is already moving ahead with many of the Plan C actions and is set to send out layoff notices on Sept. 18. Most Plan C cuts would take effect Oct. 2, if the state has not approved the city’s budget relief legislation.
The plan also eliminates funding for the First Judicial District, the District Attorney, and the Public Defender's Office. A 25-year-old state Supreme Court ruling states that the Commonwealth is responsible for local court costs. But the state has consistently refused to pick up that bill.
It's not exactly clear what will happen if PICA rejects the plan, because there is no precedent for this situation. But PICA could withhold state funds provided to the city and halt $30 million in wage tax revenue that goes to the city each month.
The state may still provide the city with the budget aid it needs. The state House of Representatives had been scheduled to vote on House Bill 1828 -- which would allow the city to raise the sales tax temporarily and to defer some pension payments -- last Tuesday. But that vote has been delayed due to widespread union complaints over pension amendments tacked on to the bill by the state Senate. It is now set for Thursday as the state House of Representatives tries to work out a compromise on the pension changes.
You can read Plan C here.
I appreciate this coverage of the city budget with daily articles and updates throughout the day, and links to documents. Great job. Any word yet from the legislature on adding District Court funding to the state budget? Will that set back the state budget negotiations? It has to happen. There's no alternative.— CleanupPhilly- State takeover of the Philly courts will likely benefit the state GOP, and I can't see Rendell protesting it that much.— CleanupPhilly
- How is it that the city funds the Office of the Clerk of Quarter Sessions and the Sheriff when these two entities collect revenue owed the city? They should not be line item costs, but line item revenue producers for the city as a whole. This is a sign of a bloated patronage government and it's untouched in Plan C even as libraries and parks.— CleanupPhilly
- The press has got to do its own independent analysis of what Philly spends and what Philly should be collecting. The pols are not going to tell you, yeah, we don't collect property taxes here, or yeah, we don't collect forfeit bail. But no responsible pol or paper would let $425 million in uncollected property tax go unremarked upon, or $1 billion in forfeit uncollected by the Office of the Clerk of Quarter Sessions. The machine is self-conserving unless you out them brutally and ruthlessly.— CleanupPhilly
- The Office of the Clerk of Quarter Sessions has a budget of $5 million, but this is listed as a cost to the city even as they are supposed to collect money owed the city. Where is the list of city debt that these agencies are responsible for? That is a critical part of this budget that a list of agency budgets doesn't include. The Revenue Dept is listed as having a budget of $16 million in cost to the city, but this is an incomplete portrait because the agency can certify revenue to be collect at Sheriff sale. It should pay for itself and more. That's another problem I have with the veracity of this seemingly incomplete Plan C copy.— CleanupPhilly
- Butkovitz says the budget doesn't make any sense, so kick it back to us to fix by not approving it. This must be to buy still more time as the state reviews sales tax hikes. But we are already long past this deadline for a plan. Council and Nutter had all year to do this, and this is what they came up with. PICA should conditionally approve the budget with the caveat that the items specified by fixed by a certain time. This is a poison pill budget, a feint, just as I suspected. When is the city going to create a real budget that works? Right now Philly is living off credit cards as the bank eyes the house.— CleanupPhilly
- Mr. Butkovitz lays out a nice argument on why it's not a good idea to defund the courts and lay off 1,000 police officers, but doesn't give any other ideas on where the money should come from. So now we have to eliminate 3,000 jobs but leave the police force untouched and keep funding the First Judicil District? You would literally have to close EVERY city department except for police, prisons, fire, courts, streets, DHS and health. Say goodbye to library, recreation, DA, L&I, revenue, sheriff, law, council, fairmount park, public property, managing director, council, mayor's office, finance, DOT, BRT, auditing, supportive housing (shelters), clerk of quarter sessions, commissioners, human resources, records, register of wills, procurement, planning commission, human relations, behavioral health, commerce, etc.— Valley Twin
- The city funds the clerk of Quarter Session and because its part of the Charter and Council has to move to eliminate it. They don't want to because its run incompetantly by a ward leader. I say axe it but only Council can move to put a chang ein the charter up for referendum. People should be carrying City Council's heads on 17 seperate poles if Plan C comes to pass.— seand
Follow Chris on Twitter
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
Follow Dave on Twitter.
Catherine Lucey joined the Daily News in 2002 and has written about murderous drug gangs, political protesters and Harry Potter. After covering the 2007 mayoral election, she moved over to the City Hall bureau where she has been reporting on the Nutter administration.
Follow Catherine on Twitter
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.
Follow Jan on Twitter
Share your tips
Catherine Luceyluceyc@phillynews.com
Chris Brennan
brennac@phillynews.com
Jan Ransom
Ransomj@phillynews.com
- Attytood
- Philly Gossip
- Philebrity
- Philadelphia Will Do
- Its Our City
- Heard in the Hall
- The Daily Examiner
- Phawker
- Suburban Guerilla
- Young Philly Politics
- OurPhiladelphia
- PoliticsPa
- The City Room
- Politico
- Drudge Report
- The Huffington Post
- Wonkette
- Eschaton
- Daily Kos
- Choose Judges on Merit
- Blogorrhea
- February
- January
- December 2011
- November 2011
- October 2011
- September 2011
- August 2011
- July 2011
- June 2011
- May 2011
- April 2011
- March 2011
- February 2011
- January 2011
- December 2010
- November 2010
- October 2010
- September 2010
- August 2010
- July 2010
- June 2010
- May 2010
- April 2010
- March 2010
- February 2010
- January 2010
- December 2009
- November 2009
- October 2009
- September 2009
- August 2009
- July 2009
- June 2009
- May 2009
- April 2009
- March 2009
- February 2009
- January 2009
- December 2008
- November 2008
- October 2008
- September 2008
- August 2008
- July 2008
- June 2008
- May 2008
- April 2008
- March 2008
- February 2008
- January 2008
- Budget
- Campaign News
- Casinos
- City Council
- City Hall
- DC
- Haikus
- Nutter
- Rendell
- Statehouse
- News | Sports | Business | What's Happening | Restaurants & Food | Entertainment | Living | Marketplace | Jobs
