As required, the Nutter administration today provided an estimate of the costs of the recent police arbitration award to the Pennsylvania Intergovernmental Cooperation Authority, a state authority which oversees the city budget.
Questions have been rasied about how the city will pay for the award, which makes changes to benefits that will save the money in the long term, but also provides costly raises to officers. According to a letter from city Finance Director Rob Dubow, the net cost of the contract would be $80 million over five years, mostly due to the salary increases.
But the administration planned to save $43.5 million from the police contract during that time. So the city must now find savings of $123.5 million in the next five year financial plan. The letter did not address how they plan to do that.
The administration has until January 18 to decide whether they wish to appeal the award. In the letter, Dubow noted that by appealing the city could risk losing some of the changes to health and pension plans.