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Property tax vs. Soda Tax, Round 2

Philadelphia City Hall and political coverage from the Philadelphia Inquirer City Hall bureau.

21 comments

Property tax vs. Soda Tax, Round 2

POSTED: Thursday, June 2, 2011, 11:01 AM

It's deja vu all over again on the 4th floor of City Hall this morning, where pre-primary election promises of no tax hikes have wilted in the face of the Philadelphia School District's budget crisis.

According to Inquirer City Hall reporter Troy Graham, City Councilman Darrell Clarke introduced a budget amendment in committee Thursday morning that would raise property taxes by about 3.5 percent. That would generate $37 million for the school district in what Clarke called an "accountability grant." The city would thus direct how the money was to be spent, most likely to fund all day kindergarten.

The grant is for one year, which would not address the district's long-term funding shortfall. Whether the maneuver is legal or has Council support is unclear.

The district is facing a budget gap of more than $600 million this year, and has asked the city for an additional $100 million, which Nutter has pushed to deliver. The district currently receives about $600 million from its share of city property taxes.

Clarke's proposal does not have the support of Mayor Nutter, who this morning revived last year's sugar-sweetened beverage tax proposal, a steep 2-cents per ounce levy on everything from Coke and Pepsi to chocolate milk and Gatorade.

It would raise $60 million this year and $80 million over a full year, all of it for schools, according to administration officials. Nutter's bill does not appear to include funding for anti-obesity programs -- part of the justification for the tax proposal in 2010. That tax was opposed by the beverage industry, Teamsters and store owners, and eventually failed. It was replaced, in part, by a 10 percent property tax hike.

Nutter did introduce his own property tax bill, which would raise about $95 milliion but administration officials have made it clear they prefer the soda-tax legislation. 

Click here for Philly.com's politics page.

21 comments
Comments  (21)
  • 0 like this / 0 don't   •   Posted 11:35 AM, 06/02/2011
    Add more taxes and give the money to the School Disrict. Next year, Lady Arlene will come up with another "crisis" and demand more money. You don't cure a drug addict by giving him more drugs!
    DonQ
  • 0 like this / 0 don't   •   Posted 12:01 PM, 06/02/2011
    See related Daily News story: "The White Shift Out of Philly."
  • 0 like this / 0 don't   •   Posted 5:29 PM, 06/02/2011
    It's not a proper Philly.com article until a commenter angrily and unnecessarily injects race into the discussion.
  • 0 like this / 0 don't   •   Posted 12:10 PM, 06/02/2011
    people who pay property taxes are productive citizens that we cant afford to drive out. I would tax everything used by the poor and see if we cant drive them out and keep the rich. Sounds bad but I don't think there is any other way. How about taxing tattoos and stuffed animals?
    tr88
  • 0 like this / 0 don't   •   Posted 2:58 PM, 06/02/2011
    Where are people going to move where their property taxes are less than double what their paying in Philly? Lots of people that dont move have done the math. And let's not forget property taxes go up in the burbs almost every year. I saw we start taxing comments on philly.com- that will raise $50m easily.
    Yakov
  • 0 like this / 0 don't   •   Posted 12:11 PM, 06/02/2011
    Do not give this district another dime till we get a audit.
    tiger
  • 0 like this / 0 don't   •   Posted 12:24 PM, 06/02/2011
    Where is Karen Brown today??? She should be in front of City hall making a case for her election. Oh, I forgot She is a Rhino toady of Mehan, Duda & the City GOP. Thus No opposition voice heard......
    tiger
  • Comment removed.
  • 0 like this / 0 don't   •   Posted 2:38 PM, 06/02/2011
    I dont think you honestly believe that there is pent up demand for 80 year old stone school buildings in north and west philly. The notion that the district could raise tens of millions from selling outdated hulks in Philly's oldest neighborhoods is a joke. Consolidation will save a few million in opearing expenses per year. You dont save $600m by consolidating a few schools.
    Yakov
  • Comment removed.
  • 0 like this / 0 don't   •   Posted 2:31 PM, 06/02/2011
    I laugh at the angry NE residents who say no more money for the district. So if they let the district get even worse via cancellation of programs and firing of teachers we will attact more white residents? Really? How does that work? By cutting after school activities and laying off thousands you will only make the district and crime WORSE. If people are fleeing the NE now it will only accelerate if the district is gutted due to funding cuts.
    Yakov
  • 0 like this / 0 don't   •   Posted 3:08 PM, 06/02/2011
    Taxpayers want to see sensible political patronage cuts before any more taxes are raised. The School District of Philadelphia has way too many administrators at outrageously high salaries. The same can be said for the Nutter Administration and all the high-priced political appointees in each department. Cut the fat, cut the bloated salaries before you even attempt to raise another tax on the middle class. I will pay more in taxes if it goes to the kids and there is shared sacrifice. There is none and there is no accountability.
    Serpico
  • 0 like this / 0 don't   •   Posted 3:53 PM, 06/02/2011
    This will not close a $600m gap which means many people will be laid off- which is what you want. The current plan calls for 50% cuts at 440 N. broad and $100M more wont do much to change that. I'm not sure who gave you the impression that additional money from the city will mean no administrative cuts. And lets not pretend that firing a few dozen high ranking officials will save $629m. Corbett is simply passing the buck down to the municipal level just like Christie. You cut at state level and put onus on local officials to raise taxes. Its not rocket science.
    Yakov
  • 0 like this / 0 don't   •   Posted 3:05 PM, 06/02/2011
    the property hike will also help pay commish ramsey's $60,000 pay raise.funny how there's always money in the budget for pay raise's & $90,000 a year hookers(mr. goode).make the school district account for every dollar they get.
    lfran55
  • 0 like this / 0 don't   •   Posted 5:40 PM, 06/02/2011
    No new taxes.
    bgreenage


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The Philadelphia Inquirer's Miriam Hill, Troy Graham, and Bob Warner take you inside Philadelphia's City Hall.

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