It's looking like City Council may hire the economic consulting firm Econsult this budget cycle as it does battle with Mayor Nutter over tax policy and spending.
It's an odd fit for a few reasons.
First, Nutter briefly worked for Econsult back in 2006, after he resigned from council to run for mayor.
Second, the positions Econsult has taken on wide range of public policy questions are in a virtual lock-step with Nutter. Most notably, Econsult has vigorously and repeatedly called for cuts to the city's wage tax. That's important because many on Council are now calling for wage tax hikes in order to help close Philadelphia's $1.38 billion five-year deficit, something Nutter strongly opposes.
"We're certainly on the saying we’re not fans of raising wage tax rates. In fact we’re not fans of not lowering wage tax rates," said Econsult Vice President Stephen Mullin.
Econsult has not yet formally applied for the job, and Mullin said the firm was "still trying to figure out" if it could provide all the services council needs. Of course Council could choose another firm or individual altogether. Some council members would like to retain the non-profit Keystone Research Center. That organization, led by Sharon Ward, is a closer fit idealogically for those council members that want a wage tax hike.
But Econsult is clearly in the running. If they do apply and get the job, it'll be interesting to see how Econsult's expertise helps Council makes its case. Or maybe the firm's advice will convince Council that Nutter is right on this one.
The deadline for the application is Monday.
Click here for Philly.com's politics page.
I doubt Council is interested in hiring a source that will not guarantee a result in advance of doing the numbers. Science is not Council's strong suit. Objectively reviewing all data is not going to be what Council will want, because the result will likely not be what Council wants to hear. Council wants a group to tell them that revenue is down by more than 2%, which Council could get from the city government itself with no problem, but also to evaluate this as a best possible alternative. Whomever Council hires can't recommend any other path but raising wage taxes, so any discussion of property tax collection of the half a billion owed, collecting forfeit bail using industry standards like liens and lien collection, putting in AVI and explaining it to people, selling the vast tracts of city owned and RDA controlled property that keeps the property tax revenue at only 16% of the total pie, using property taxes to fill the gap, will be verboten. Most of all a firm they hire can't mention that Council will have to cut government spending like cars and DROP plus make hundreds of millions of dollars worth of cuts to government even if the wage tax rate is raised. The wage tax can't do what the sales tax raise and the property tax raise could do. Common sense cuts and collections will be anathema for anyone Council hires, so I doubt Econsult will even take the work on those terms. They're too honest. They won't make up their minds in advance of the finding.— CleanupPhilly- Council has a very specific set of requirements. They want someone who will manufacture process that concludes that wage taxes can be used to fill a gap proposed now by the Nutter budget of property tax hikes of $272 million and a sales tax hike of $342 million. Council wants someone to tell them that it's OK to raise wage taxes enough to collect $614 million in the shortfall created by not raising property taxes and not getting the sales tax passed. No legit economist could do that.— CleanupPhilly
- I hope Econsult take the work, and shows how much a wage tax hike to fill that much of a gap of at least $614 million will hurt the local economy and limit prospects, based on Inman's research on the effect of cutting the wage tax. But I doubt Verna will accept the conclusion. If she hasn't accepted the conclusions presented thus far by world class Wharton economists about the wage tax, and the research that led NYC to abolish it's wage tax, what analysis could ever woo her? She's hardened into her mindset, ossified, closed, and goes for the easy vote at any cost to the city. Council won't be changed until the city faces bankruptcy like it did in Rendell's first term of office. They addicts for the cheap easy vote of low underassessed property taxes, getting the other guy to pay, in this case the suburbanites who don't vote and the minority of wage earners, huge local government, slow-to-no property tax collections that favor supporters, promising city property and RDA property to contributors and friends, and other corruptions they regard as essential to their power. They won't trade power for good government. Ever.— CleanupPhilly
- I expect fully that Verna and Council will engineer a wage tax increase bill that will drive out any last die-hards during a recession, and will get ultimately blocked by H-burg/PICA and/or a lawsuit by revolting taxpayers, Tea Party-style. As the year or so is wasted, the city falls deeper and deeper into debt as revenue plummets from a lack of response in growing the property tax base. Council will blame the GOP in H-burg for trying to starve them out of office. A bus of members of the black clergy will protest in H-burg, and H-burg will try to educate them on issues like property tax collection, which the clergy will oppose, and the city languishes. Council will have to close city offices for one day a month, or more, and start to sell city assets to meet operational costs. Mud will be thrown intra-party. PICA will start dropping strong hints about what they expect to see in the budget in well-crafted, somewhat opaque press releases. Council will drag its feet still longer. Nutter will wait for them to exhaust themselves, deflecting criticism as best as possible. Meanwhile, they could have already solved this and moved forward. Chance of the latter happening, odds are 1 in 10,000.— CleanupPhilly
- Nutter may wish to hurry the process through so as to minimize the damage to himself created by a heedless Council, those who are wage tax raisers. If he has any dirt, now is the time to contact Laurie Magid.— CleanupPhilly
- CleanupPhilly. Are you insane? You should start a blog instead of hijacking articles on a daily basis with these drawn-out ramblings. Seriously, what's the deal? Just start a blog for godsakes and link to it. If it is worth reading, people will read it.— AntiWaste
6 comments
About Inquirer City Hall Staff
- Pa. Politics and Policy blogs
- Young Philly Politics
- Politics PA
- Keystone Politics
- Philly Blogs:
- Philadelphians for Ethical Leadership
- Metropolis
- Citizen Mom
- Plan Philly
- Changing Skyline
- Citizen Hunter
- American Debate
- The Illadelphia
- Phillyist
- Trash Me
- The clog
- Philadelphia Will Do
- Philly Skyline
- Phawker
- Philebrity
- Philly Blog
- Philly Future
- Addytood
- Philly Confidential
- Great Expectations
- Philly News
- Legal Intelligencer
- Philadelphia Business Journal
- Philadelphia Weekly
- City Paper
- Sunday Sun
- Public Record
- Inquirer
- Daily News
- Tribune
- Evening bulletin
- Metro
- Philly Politics and Policy Blogs
- Fight for Room 215
- A smoke Filled Room
- Hallwatch
- The Next Mayor
- Watchdogs & Movements
- Philly for Change
- PICA
- Casino Free Philadelphia
- The Field Negro
- PA Clean Sweep
- Neighborhood Networks
- Philadelphia Forward
Blog Roll
- February
- January
- December 2011
- November 2011
- October 2011
- September 2011
- August 2011
- July 2011
- June 2011
- May 2011
- April 2011
- March 2011
- February 2011
- January 2011
- December 2010
- November 2010
- October 2010
- September 2010
- August 2010
- July 2010
- June 2010
- May 2010
- April 2010
- March 2010
- February 2010
- January 2010
- December 2009
- November 2009
- October 2009
- September 2009
- August 2009
- July 2009
- June 2009
- May 2009
- April 2009
- March 2009
- February 2009
- January 2009
- December 2008
- November 2008
- October 2008
- September 2008
- August 2008
- July 2008
- June 2008
- May 2008
- April 2008
- March 2008
Archives
- Heard in the Hall columns from the Inquirer
Recent Columns
Get it now
Philly.com Promotions
- News | Sports | Business | What's Happening | Restaurants & Food | Entertainment | Living | Marketplace | Jobs
Site Services:
Classifieds:
Partners:
Local Services:
