The state House today gave preliminary approval to a bill to allow Philadelphia to increase its sales tax and defer pension payments, the first step toward easing the city's fiscal crisis.
But the legislation must still receive a final vote in the House and it was not clear when that will be.
The city asked Harrisburg for a bill that would include two elements key to the budget City Council approved last month: a one-cent increase in the city sales tax and a two-year delay in payments to the city pension fund. Mayor Nutter, who is in Harrisburg today meeting with lawmakers, also asked the General Assembly to approve structural changes to the fund.
It also was not clear when the state Senate would consider the bill, or if the majority Republicans in that chamber would support the measure. Senate Majority Leader Dominic Pileggi (R., Delaware) said yesterday legislators and the governor must agree on the 2010 budget before the Senate will consider what he called "the Philadelphia bailout legislation."
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I hope these measures are denied...Philadelphia has not done anything substantial to par back its bloated local government...or collect money its due....read the comments on the philly.com pages and there is plenty we could do to raise revenue without increasing the sales tax. Wish some of the posters on this site were running Philadelphia instead of the hacks in there now. Now is the perfect time for change...real substantial change.— rhawnhurst- Amy, I need to correct you. Its not the first step to easing the city's fiscal crisis but its first step to help to delay the city's fiscal crisis. Without an adjoining plan to grow the revenues or cut costs we will be back here again and mybe in worst situation in a few years. its been said elephants never forget and politicians never learn from experiences.— DennisR
- Rawnhurst, if the posters on this site were running the city...from their crybaby bunkers in the 'burbs...we'd be in deeper trouble. This tax hike sucks, but is better than the alternative and at least gives us some breathing room to deal with the other revenue-raising ideas. Just be happy you aren't in Chicago, with 10% sales tax on everything!— FMT
Oh goody, I'll pay a higher sales tax so employees like Latrice Bryant can have their pays restored to ridiculously high amounts. I'm disgusted with the way this city operates anymore.— amd804- Comment removed.
- How about doing away with all overtime? That's the first thing my job did when the financial crisis hit.— jersey girl
- If Latrice Bryant was the only person Philadelphia taxpayer money went to we wouldn't be in a fiscal crisis. Why don't you go out on trash day and look at the guy breaking his back to haul away your refuse and tell him you don't need him because he's just part of a bloated government and doesn't deserve a "bailout." I, for one, don't want to live in a city where there are 1000 less cops, no rec centers, one library and bi-weekley trash pick-up. But if you aren't willing to kick in a penny on the dollar to keep that from happening, have fun dodging bullets and dysentery in the new Philadelphia.— sdls1603
- I respect and honor those city employees who work hard and actually earn their pay. I have no respect, NONE, for the hundreds of patronage workers who straggle into work by 10 AM and are out by 2 PM. I have no respect for city workers who don't pay their taxes or their utility bills. What makes taxpayers angry is getting ripped off by drones, incompetents, and arrogant pols like Fumo and the Pay for Play Gang.— feudi
- Dear Amy -- its not a one cent increase in the tax -- its a one percent, from 7% to 8%. I know accuracy is not a core competency of the Inquirer, but this is a rather important issue.— C.Jackal
- Is that tax hike temporary? I mean, Does Nutter plan to depress Philadelphia's small businesses permanently? Make the sales tax higher, and people will cross the bridge to buy a soda.— DonQ
- remember, there is no prison fence around the city. you and your money can leave whenever you want. it's the ultimate vote.— doo dah man
- I lot to occasionally shop in the city but if they raise their sales tax another one percent I will avoid the city like the plague. A two percent difference between buying an item in the burbs as opposed to the city is huge for me.— longdistancerunner
- If Nutter and City Council want more money to spend then they should raise the property tax rate which has remained stagnant and unchanged in over 20 years. It is unacceptable to have others pay for city services through an increased sales tax especially given all the non resident wage taxese the city gets. Raise the property tax rate or cut spending.— rlc18940
- Bastids! This just shouldn't be allowed.— anon
