Mayor Nutter just announced that his upcoming budget won't include layoffs in the police or fire departments. Nutter, joined by Police Commissioner Charles Ramsey and Fire Commissioner Lloyd Ayers, also said there will be no closures of facilities or elimination of equipment. His plan last fall to close libraries and eliminate fire companies drew legal challenges and prompted wide-spread controversy.
"I refuse to do anything that halts our progress on a march to a safer city," Nutter said.
Nutter – who must close a five-year $1 billion budget shortfall -- is set to release his budget and five-year financial plan in City Council on Thursday.
Nutter also said that he plans to propose a temporary two year property tax increase of 19 percent over the current rate in the fiscal year that starts on July 1 and 14.5 percent over the current rate in the fiscal year that starts in July 2010. Although real estate tax revenues are split with the School District of Philadelphia, the entire increase would go into city coffers, Nutter said.
Without that tax increase, Nutter said drastic cuts would be required, including police and fire layoffs.
Advance versions reviewed by the Daily News and reported on last week showed Nutter was planning temporary hikes to sales and property taxes, as well as service cuts. Nutter said the property tax hike was changed from 17 percent for both years -- as the Daily News had reported -- because an increase deterioration in revenues is going to make the next fiscal year a "financially challenging year."
Nutter said the increase would mean homeowners would likely see a tax increase of $50 a month or less.
Nutter also stressed that he does not want to make an increases -- temporary or otherwise -- to the wage or business taxes.
"We will not take temporary steps that will have a devestating long-term impact," he said, noting that planned reductions to the wage and business taxes were already frozen in a round of budget cuts last fall.
Councilman Bill Green said he didn't agree with the strategy. "I don't think we should have anything off the table at this point," he said.
Did Chris Brennan mean to write "would likely see a tax increase of $50 a month or less?" Because 17% of my taxes is only $300 more, but fifty a month is $600 a year. What is the average property tax in Philly, I'm curious?— CleanupPhilly- $50 a month? Is that right? $600 a year?— CleanupPhilly
- Way to go Mayor Nutter! SLAM it to people who are already having trouble paying their bills and are living hand to mouth, week to week. Nice job!— Stanley Levin
- does that mean that real estate taxes for employees of the BRT will go up as well - because I can point out a number of employees who own real estate and yet pay the least in taxes..Joe Russo being one of them... 700 block of federal...(he also is a close ally of fumo)— gogglespaisano
- Nothing is every temporary when it comes to taxes. Just look at NJ— jersey girl
- My taxes are about $2400/month, so a 19% increase is $456 or $38/month.— Valley Twin
- What gets cut then?— CleanupPhilly
- Mine are $2400/year, so 19% increase is $456 or $38/month— Valley Twin
- I'm curious if Nutter (and Brennan) are reporting correctly, and just skipping ahead to when AVI is put into place.— CleanupPhilly
- Guess it all depends on where you live. a 190k home in SOuth Philly could be $600/yr. A 150k home in the northeast probably pays 1k/yr. And they have better schools...go figure.— EddieMunster
- Stanley, the good thing about property taxes is that they are against an asset. That means that people who own their homes or most of the equity in it, can get a reverse mortgage. Contrast that with a raise in wage or business taxes.— CleanupPhilly
- I wish council members like Bill Green would stop running for office and start making some tough decisions.— JamesKlay
- i PAY 1800 IN PROPERTY TAXES NOW, ADD 19% THE FIRST YEAR,WOW WHAT AN INCREASE $342 A YEAR FOR A TOTAL OF $2142 FOR NEXT YEAR, THAN ADD 14.5% THE FOLLOWING YEAR FOR ANOTHER INCREASE OF $311 FOR A TOTAL INCREASE TO $2453. THAT IS A FOR A TOTAL INCREASE OF 36.5% over 2 years. I think he is saying in 2 years you will pay about 50 more a month on average. I am out of this dump.
- just to clarify, it's 19% over current year rates and 14.5% over current year rates, NOT 33.5% right?— dreinterests
- There are plenty of 250k homes in south philly paying well under 1k per year. The city can have my $13.00 a month.— pagoda
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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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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.
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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.
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