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Tuesday, July 21, 2009

The state board that oversees Philadelphia's long-term financial management conditionally approved the city's five-year spending plan today, but it warned the plan faced a "dramatic level of risk" and directed the city to come up with 25 million in additional annual spending cuts by August 20.

Chief among the risks is the city's assumption that state lawmakers will grant Philadelphia's requests for a penny per dollar increase in the city sales tax and for a restructuring of its pension payments. Harrisburg is unlikely to take up those requests before the state budget impasse is resolved, and even then the city's proposals could be denied.

The other key risks cited by the Pennsylvania Intergovernmental Cooperation Authority were the as-yet unresolved labor contracts, and increasing uncertainty over the collection of property taxes, due to spiking delinquency rates and turmoil at the Board of Revision of Taxes, which sets property values.

Although the impact of an additional $25 million in annual PICA-ordered cuts will be significant, it was likely that Mayor Nutter would have been forced into cutting at least much in the months ahead, given the remarkable level of fiscal uncertainty the city finds itself coping with.

Posted by Patrick Kerkstra @ 2:10 PM  Permalink | 18 comments
Monday, July 20, 2009

The incomparable Philadelphia Public Record had an intriguing take on the light 55-month sentence former State Sen. Vince Fumo received last week. The surprisingly short prison term was, according to the Record, a big win for South Philadelphia bookies, who were taking 6-5 odds on the sentence.

"The bookies are indebted to Vince," the paper claimed.

Published and edited by former City Councilman Jim Tayoun - who himself served time on corruption and tax-evasion charges - the Public Record purports to wield influence and power "with an impact not felt from any other publication since Tom Paine's 'Common Sense.' " Reading the Record's observations on Fumo's post-prison future, it is hard not to wonder whether, perhaps, Tayoun's own experiences influenced the paper's opinion.

"Though Fumo will spend a total of 55 months in prison, there is no doubt he will return to Philadelphia a folk hero, much like some of the other political leaders in the past who served their time but came back with their constituencies relatively well intact," the Record wrote.

Posted by Patrick Kerkstra @ 9:48 AM  Permalink | 3 comments
Monday, July 20, 2009

Yesterday, we exclusively reported that about 2,000 city employees and employee spouses are past due on their property taxes. Take a look if you were at the shore this weekend.

Click here for Philly.com's politics page.

Posted by Patrick Kerkstra @ 9:39 AM  Permalink | 5 comments
Friday, July 17, 2009

Running out of cash because of the state budget deadlock, the City of Philadelphia has stopped paying many of its bills until the impasse is resolved, City Finance Director Rob Dubow said this morning.

The city must temporarily withhold about $120 million in July and August to avoid running out of cash completely, Dubow said. Payments to contractors stopped Wednesday. Dubow, Budget Director Stephen Agostini and Treasurer Rebecca Rhynhart said that the city will pay its payroll, benefits, debt service and "emergency" contracts. The $4 million a month paid to foster parents, for instance, is considered an emergency, and other contracts will be considered on a case-by-case basis.

In a noon press conference, Mayor Nutter said the city would ask vendors to "understand where we are."

"We're asking them to work with us through this crisis," Nutter said.

Posted by Jeff Shields @ 10:37 AM  Permalink | 56 comments
Thursday, July 16, 2009

City Council's 17 members received their biweekly paychecks today without the 5 percent cost-of-living raise they are required to take as of July 1.

The checks would have been the first payday with the 5.13 cost-of-living adjustment, of CoLA, mandated by city law.

That doesn't mean they won't get the money eventually. Council leadership decided not to ask the Finance Department to factor in the raises until all Council members have decided whether they will give the raises back to the city in a show of solidarity with union workers being asked to accept no raises for four years.

Council has determined that it cannot legislate the raise away -- the 2003 law that set elected officials' salary dictates that they increase by the Consumer Price Index every June 30. Council cannot raise or lower salaries of elected officials during their term, which does not end until January 2012.

Posted by Jeff Shields @ 3:43 PM  Permalink | 11 comments
Wednesday, July 15, 2009

Recycling rates in Philadelphia have skyrocketed since the beginning of single-stream recycling effort in January, Mayor Nutter announced today.

Nutter, in a press release, said that residential recycling "has reached an all time record with a 46 percent increase in household recycling over the last year."

The  Streets Department collected 75,060 tons of household waste between June 2008 and June 2009, 23,734 tons more than in the previous 12-month period.

That's 278 pounds of recycled materials per household, up 88 pounds from the previous year.

Posted by Jeff Shields @ 10:34 AM  Permalink | 34 comments
Thursday, July 9, 2009

A current city Commerce Department official, Curtis Gregory, will temporarily lead the Office of Economic Opportunity, Mayor Nutter said today.

Gregory will succeed Michael Bell, who was fired two weeks ago after an eight-month stint trying to revamp the office and boost minority-participation in city contracts.

Bell was fired after administration officials questioned his job competence.

Gregory is currently the director of business services, a separate Commerce Department unit.

Posted by Marcia Gelbart @ 3:28 PM  Permalink | 13 comments
Wednesday, July 8, 2009

City officials just finished a broad review of what impact the federal stimulus package has had so far on Philadelphia.

Two main points:

First, about $931 million is expected to be allocated to a combination of government agencies, including the city, SEPTA, the Philadelphia School District, the Philadelphia Housing Authority and PennDOT. The city itself is anticipated to receive $353 million of that sum. This doesn't include other funds that the federal government has not yet made available that the region may beneift from later on.

Second, the actual amount of money currently on hand for the city to spend is $13.3 million. And almost all of it has been obligated, including $6 million to maintain 52 court-related positions, and $7 million to to provide job training for adults and teens. As soon as the cash comes in, the city is trying to get it out.

Posted by Marcia Gelbart @ 3:25 PM  Permalink | 6 comments
Monday, July 6, 2009

In an unprecedented step that is likely to increase tensions between the city and its labor unions, the Nutter administration today put an indefinite freeze on two classes of civil service raises that compensate employees for their time served. For many workers, the effect of the ruling could be short-lived, as new labor contracts could well re-impose the increases. But for now, at least, city employees will not be getting routine raises for time served. Over a period of years, the effect on salaries could be dramatic, cutting pay by thousands. The savings to the city would be significant as well, on the order of $13 million a year. The Nutter administration says it notified union leaders of the move ahead of time. More to come once we've heard from them.

Click here for Philly.com's politics page.

Posted by Patrick Kerkstra @ 3:15 PM  Permalink | 15 comments
Wednesday, July 1, 2009

Wadell Ridley, Jr., executive director of the Mayor’s Office of Community Service, has submitted his resignation, effective Friday.

He said in an interview this afternoon that he was leaving for a new job. “At this time I cannot disclose what it is. However, it is the best thing for my family and I,” he said.

Hired 18 months ago at the start of the Nutter administration, Ridley earned $91,361. As executive director of MOCS, he oversaw 90 employees and a $12 million budget.

Ridley previously worked as a former assistant vice president of government relations for St. Joseph’s University.

Posted by Marcia Gelbart @ 5:20 PM  Permalink | 9 comments
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About Inquirer City Hall Staff
The Philadelphia Inquirer's Jeff Shields, Marcia Gelbart, and Patrick Kerkstra take you inside Philadelphia's City Hall.