As Mayor Nutter made his rounds recently in the State Capitol, urging lawmakers to pass the city's budget-relief legislation, he was shadowed by an unlikely figure: GOP City Controller candidate Al Schmidt.

"I was following in his wake, trying to correct the record," Schmidt said. "I wanted to explain that Philadelphia was in dire financial shape not simply because of the national economy, but because of political decisions that this mayor and former mayors and City Council have made."

It sounds strange, doesn't it? A Philadelphia Republican clashing with a powerful Democrat for actual ideological reasons? And on a matter of serious public importance?

Schmidt pitched his views to a powerful audience: Republican leadership in the state Senate. He says he met with Senate Majority Leader Dominic Pileggi (R., Delaware), Majority Whip Jane Clare Orie (R., Allegheny), and Senate President Pro Tem Joseph B. Scarnati (R., Cameron), among others.

»  More Mr. Schmidt Goes to Harrisburg

Mayor Nutter this afternoon came out in clear favor of Senate legislation that both gives financial relief to Philadelphia while mandating changes in pension benefits strongly opposed by the city's unions. He said so in a letter to Republican Senate Majority Leader Domenic Pileggi (see below).

What the unions - all four are currently negotiating new contracts with the administration - are wondering is what role Nutter had, if any, in drafting the measure, which could give the mayor more leverage in the collective baragaining and arbitration processes.

The full Senate is poised to vote on the legislation, as outlined in today's Inquirer story, sometime later today.

But it appears the legislation may change even moreso, as it is scheduled to be voted on by the Senate Appropriations Committee before reaching the Senate floor.

»  More Nutter backs Senate bill calling for reduced pension benefits

Mayor Nutter refused to offer an opinion this morning on sweeping pension reform provisions that, for now at least, are part and parcel of Philadelphia's yet-to-be-passed budget relief legislation.

Nutter said he had not had a chance to thoroughly review the 50-pages worth of pension-related amendments, which were attached to the bill last night. Nutter said also that the bill could be changed again in the next few days.

If the bill as drafted becomes law, it would provide Philadelphia the penny-per-dollar sales tax hike and pension payment restructuring Nutter has said the city desperately needs to avoid crippling service cuts. Nutter, of course, very much wants that, and as quickly as possible.

But the bill now also includes language that is incredibly tough on city unions, mandating lower retirement benefits for all future city workers and forbidding the city from increasing benefits for current workers. Though the legislation would do little to solve Philadelphia's short-term pension funding problem, it would help prevent the city from sinking deeper into a pension funding hole in years to come.

»  More Nutter noncommittal on Senate's pension legislation

A routine meeting of the State Senate Finance Committee at 5 p.m. today is packed with import for Philadelphia.

A senate committee vote is expected on the city's sales tax and pension payment deferral requests, which are the only things standing between Philadelphia and what Nutter has called the "doomsday plan c" budget.

The committee, though, will also take a look at a couple of very intriguing amendments to the legislation, including a possible end to the highly controversial DROP program for elected officials (which State Sen. Larry Farnese has called for) and fundamental reform of the state municipal pension system, including, possibly, Philadelphia's.

At this point it's too soon to say which amendments will pass and which won't. And of course, this is just a committee vote. The full Senate also must vote, and if the legislation is amended, the House will have to weigh in again as well. Still, today is important. We should have a far clearer idea of what's coming after the hearing this afternoon.

»  More City budget, pension and DROP on the line in Harrisburg

With the "doomsday" budget deadline approaching and the city's sales tax and pension legislation still bottled up in Harrisburg, some observers have been quietly suggesting that Nutter and City Council ought never to have put the fate of Philadelphia's budget in the hands of state lawmakers.

"Heard in the Hall" asked Nutter if, in retrospect, he would have done anything differently.

"This is the worst kind of Monday morning quarterbacking. We've been very responsible here," he said.

Theoretically, the city could have solved its budget mess on its own, through radical local tax hikes and a massive round of further spending cuts. Practically, though, Nutter's options were limited.

»  More Nutter defends Harrisburg budget strategy

With the city's budget in limbo, state senators this morning used a hearing on a Philadelphia fiscal relief bill to explore potential statewide pension reforms, including changes that would, if enacted, usurp local control over Philadelphia's pension fund and public employee retirement benefits.

Ostensibly, the hearing was about Philadelphia's request to state lawmakers that the city be permitted to increase its sales tax from seven percent to eight percent, and to restructure and delay pension plan payments. Without those measures, Mayor Nutter has said he would be forced to cut $700 million from the city's budget over the next five years, requiring thousands of layoffs and sharp service reductions.

But while city officials would like nothing better than for Harrisburg to approve those requests quickly and with little debate, the State Senate is instead using the legislation as an opportunity to explore far more comprehensive pension reforms.

For instance, one amendment under consideration would require municipal pension funds statewide that dip below a 50 percent funding level - a marker Philadelphia is dangerously close to - to hand over control to a state entity that would have the authority to both tell cities how much they must pay into the pension fund each year and to set retirement benefits without negotiating with municipal labor unions.

»  More As city waits, Harrisburg debates big pension reforms

Mayor Nutter is headed out of town again, this time to Kentucky where he will be the keynote speaker tomorrow during a luncheon attended by other mayors.

The event is hosted by the Louisville Leadership Center, a development and civic engagement organization, along with Louisville Mayor Jerry Abramson.

From the web site about the event:

"Mayor Abramson has become good friends with Mayor Nutter over the past few months while they both have been involved with the Obama Administration’s meetings with mayors from major cities. Mayor Nutter’s visit is an opportunity for Louisville leaders to understand how other cities are handling the availability of federal stimulus funds. Nutter is also leading Philadelphia through a major budget crisis and is focusing on green initiatives despite the challenges the city is facing. The visit from Mayor Nutter provides timely and relevant learning opportunities for local leaders."

»  More Nutter to speak in Kentucky tomorrow

The city will sharply cut back on its new 311 program, delay a police recruiting class and cut $1.5 million from politically sensitive low income housing fund, Mayor Nutter said today, as he announced yet another round of budget cuts, this one topping $20 million.

The mayor said the cuts were necessary due to the inaction of state lawmakers, who are considering legislation that would let the city increase its sales tax and reduce pension payments over the short term.

“There are real consequences to inaction. Every week that passes without Senate approval costs the city millions of dollars, forcing ever deeper cuts to services,” Nutter said in a statement.

Each month the that the city’s legislation fails to win approval costs Philadelphia about $10 million in lost sales tax income, Nutter said.

»  More Nutter makes $20 million in cuts, urges Harrisburg to act quickly

After 20 years, Philadelphia has a new waterfront chief.

Mayor Nutter this afternoon named Thomas P. Corcoran to lead his year-old Delaware River Waterfront Corp., which replaced the Penn's Landing Corp.

Corcoran, chosen from an applicant pool of more than 100 candidates, seems a natural for the job: For 25 years, he has led Camden's efforts to revitalize its waterfront, as president and CEO of the Cooper's Ferry Development Association.

Think Campbell's Field, the Adventure Aquarium, and the Susquehanna Bank Center - Corcoran had a role in each.

»  More Camden waterfront CEO switches jobs to Philly