As the SEPTA strike drags into the weekend, I've started wondering about the fiscal impact on Philadelphia's troubled city budget. After all, a transit shutdown was not factored into the original revenue projects. Will it matter?
I asked Uri Monson from the Pennsylvania Intergovernmental Cooperation Authority. As the director of the city's fiscal watchdog, he keeps a close eye on city tax revenue. According to him, it's very hard to predict what the strike will do to city finances.
“I think short-term impact there is negligible, if any,” Monson told me. “People are struggling to get to work and it's causing a backup, it's a loss of productivity. But most people seem to be heeding the mayor's call and being more forgiving for staff. People aren't getting fired.”
Monson says the bigger impact could be on the hospitality industry, since the strike might encourage people to not visit or come downtown.
“In the long term, there could be people who cancel vacations in Philadelphia. So we might see less revenue for hotels and related industries,” said Monson. “It certainly has reinforced the Philadelphia stereotype of having self-oriented, anti-progress unions.”
Monson feels very strongly about that last point. He says that the transit strike could dissuade businesses from moving to Philadelphia.
“The headline should have been the World Series and instead it got tied into the transit strike. Not just a transit strike, but a strike that happened in the current economic climate. That can impact how businesses view Philadelphia and make it less likely for companies to locate in Philadelphia. We'll never know the exact number, but the strike can be the kind of thing that pushes you over the edge.”
Monson doesn't see any bright spots in the strike, but he concedes it could lead to increased revenue in one area: parking.
“There may be some small increase in the parking tax. I don't know if there will be more parking tickets, the Parking Authority has said they will be more lenient,” said Monson. “The real impact is how many people will be fed up with SEPTA and stop riding altogether. That might lead to more people driving to work and parking.”
Also on IOM: Here's how SEPTA's money works; a guide to pensions.
Ask someone from Wharton, or someone who isn't afraid of offending the Democrats' union vote and campaign contribution. You'll find they suddenly find they have Excel skills again.— CleanupPhilly- Of course the strike's been economically catastrophic, especially in a recession. It slows down productivity, discourages tourism, undoes state and city spending to promote tourism ("XOXO, We're on STRIKE! Stay AWAY!"). It hurts hotels, the blue collar employees who depend on that dollar, hurts the sales tax as shoppers can't ride Septa as my senior neighbors do, hurts events, exhibits, museums, shows, as people avoid the city from being worn out battling traffic. The city looks beat, busted, and unintelligent. Solutions seem to evade Philly. Innovation seems to die on the vine. It's stuck in amber. Investors think twice, businesses think about moving. It's a body blow.— CleanupPhilly
- Ask a Wharton undergrad to pick that for a project for one of their classes. They'd have some numbers outlined and referenced by the end of the week. Too bad Uri doesn't know any.— CleanupPhilly
- Gas for city vehicles (city worker shuttles and workers visiting homes and agencies) and overtime.— jasmine68
- This same stupid talk happens every Septa strike - like the Septa workers are some kind of traitors for walking off their jobs. Fact is, they were without a contract for months and were patient. If their union didn't fight for better wages and benefits, then other unionized workers and people even in the non-unionized workforce would suffer, long-term. It's never a good time for a strike. Belly-aching about the economic downturn as if that should preempt the unions' struggle for better wages and benefits, is short-sighted and stupid. Fact is, the unions didn't cause the economic down-turn, the greedy bankers did. Why aren't we attacking them instead of the Septa people, who are just trying to earn an honest living?— contir
- Repeal the 13th Amendment! That the solution.
MONEY AND JUSTICE DON'T MIX
WILL THE NEW COUNCIL GIVE YOU A SAY?
Tips? Comments? Questions?
Contact:
Doron Taussig:
215-854-5307
doron.taussig@gmail.com
@dorontaussig
Holly Otterbein:
215-854-5809
hm.otterbein@gmail.com
@hollyotterbein
Juliana Reyes:
215-854-5855
juliana.f.reyes@gmail.com
@juliana_f_reyes
 | Follow on Twitter |
- Philly Clout
- Metropolis
- Attytood
- Heard in the Hall
- Commonwealth Confidential
- Philebrity
- Phawker
- Young Philly Politics
- OurPhiladelphia
- Capitol Ideas
- Grassroots PA
- PA Policy Blog
- Media Mobilizing Project
- The Notebook
- Dave Davies Off Mic
- Committee of Seventy
- The Independent
- Naked City
- Plan Philly
- 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
- News | Sports | Business | What's Happening | Restaurants & Food | Entertainment | Living | Marketplace | Jobs
