Mayor Nutter today said the city will lay off 12 more employees and delay training for new police recruits to deal with a shortage in revenues due to a delay in getting state approval for a temporary sales tax hike.
Nutter plans to delay a Police Academy class due to start in the fall. He is also eliminating six full-time positions in the Mayor's Office [two of the six positions are filled] and laying off six employees in the city's 311 call center and four employees in the Finance Department. Layoff notices were issued Friday. The cuts take effect at the end of the month.
Nutter’s budget -- passed in May – counted on getting state approval to increase the local sales tax by 1 cent on the dollar for five years and to make changes in how the city's pension fund is replenished. Those changes, worth $700 million in the city's five-year plan, would help balance the budget.
But Harrisburg lawmakers still haven’t given the city the go-ahead on either item. And the budget plan counted on getting $10 million per month in sales tax revenue. If approved, the sales tax increase would take 4 to 6 weeks to implement. So the city has now lost $20 million in revenue for August and September – and October may be next.