Council passes amended budget

From Philly Clout:

City Council just passed the $3.8 billion* fiscal year 2010 city budget, designed to close a $1.4 billion gap in the five-year financial plan.  Mayor Nutter is expected to quickly sign into law the spending plan, which goes into effect on July 1.  But one major step is still needed.  The state General Assembly must approve provisions in the city budget to increase the sales tax by 1 cent for five years and to stretch contributions to the city's pension fund to 30 years instead of 20 years.

If Harrisburg doesn't come through, the city will instead implement an alternate budget with wide-spread cuts, including police lay-offs, the elimination of some fire equipment and reduction in trash pick-up.

Nutter and Council struck the budget deal last week when he abandoned his call for a controversial two-year increase in property taxes that did not require approval from Harrisburg.

The state's budget deadline is the end of June and negotiations often drag into July. So it could be a while before the city knows whether this budget will hold. And some Harrisburg lawmakers have made clear that they have concerns about the city’s plans.

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