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Thursday, November 6, 2008
Nutter: Budget crisis; many service cuts permanent

 

The Inquirer staff reports:

Mayor Nutter today outlined hundreds of millions in budget cuts to close a $1 billion budget gap, and said many of the service cuts will remain in place even after the current economic downturn ends.

Almost immediately after he finished a speech and a press conference, city fire fighters announced a demonstration to protest cuts in their department.

The budget reductions, forced by the collapse of the stock market, drastically reduced tax revenue and a frozen capital market, will mean 220 layoffs, closing of 11 library branches, mothballing five engine and two ladder trucks and closing most city pools.
“I cannot over emphasize how serous things are that we would get to this point,” Nutter said.

The city faces the $1 billion budget gap over the next five years.


“It is personally painful to have to make the ultimate decision to lay people off,” he said. Many of the 220 will be library and recreation employees. Another 1,600 seasonal jobs will be eliminated, and 570 “contractual” jobs will be ended.

Five of the layoffs will be in the mayor's office, and "some" staff will see salaries cut by 3.75 to 5 percent.

No police officers or firefighters will be laid-off. But overtime will be reduced, and Nutter announced a host of other cost saving measures.

The business and wage tax reductions scheduled will be suspended until 2015, to save some $220 million. Wage tax cuts funded by casino revenue will continue.

To save additional funds, Nutter said all non-union employees “earning more than $50,000 will be required to take a five day furlough without pay" this year and next.

The library cuts were made in consultation with Free Library staff. Nutter said.

“I grew up in the Cobbs Creek branch library….I know the importance,” Nutter said
“One of the happiest days in my daughter Olivia’s life was when I took her to the Central branch to get her library card”

Many of the cuts Nutter announced "will be permanent" the mayor said. "I have no expectation that we will open the 11 libraries."

Although the $1 billion gap is less than 6 percent of the city's projected spending over the next five fiscal years, the structure of the city's budget sharply limits where Nutter can cut.

 
More than half of city spending is essentially non discretionary, going toward big-ticket items such as pension payments, debt service, and federally matched social services.


In effect, that forces virtually all the budget pain onto less than half the city government.
The cuts, however unavoidable they might be, seem likely to make it hard for Nutter to achieve some of the big goals he established for his administration when he took office in January, such as halving the dropout rate, doubling the college-degree attainment rate, and changing the tax structure to encourage job creation.


Nutter's team has also had precious little time - just two months - to draw up a completely new spending plan, all while fielding savings suggestions from Council members, union leaders, and other elected officials. Yesterday, City Controller Alan Butkovitz proposed selling the city health center at Broad and Lombard Streets for $6 million. Nutter said that won't save any money, because it would cost $7 million to move the offices elsewhere.

The instant response from the firefighters union - there will be a demonstration today at Engine 6 at 2600 Aramingo Ave. - may be an indication of other fights to come.

Click here for Philly.com's politics page.

Posted by Nathan Gorenstein @ 3:27 PM  Permalink | 120 comments
Comments   
Posted 03:34 PM, 11/06/2008
cynmoe
Good think they opened up the qualifications for food stamps, my mom is at risk of loosing her city job she has had for 13 years, oh wait, she still won't qualify for food stamps with my father's little pension he gets...way to take care of your dedicated city workers mayor...why don't you cut the $90,000 a year job of a council members worker that lies on her timesheets and gets paid for time not on the job, that was pushed under the rug nicely!!!
Posted 03:40 PM, 11/06/2008
tonyS
Seriously: no wants to pay more taxes, but where's the money to come from if there's no cuts in spending? Too many unions with too many perks and benefits, and the unions MUST start contributing towards healthcare like the rest of us. I'm not anti-union, I'm just realistic in a changed economy.
Posted 03:40 PM, 11/06/2008
lincolndrive
How would it cost $7M to move the city health center somewhere else? That is one expensive move! That building is such a blight on the Ave of the arts and is prime development area (assuming the market for development got better).
Posted 03:41 PM, 11/06/2008
saanmom76
i just want to know, why do the people have to suffer, the children especially. As a child i spent summers at public swimming pool, eating free lunches and staying out of trouble, also we spent alot of times at the library. Just saying without outlets and prevention for the children in the inner cities, get ready, its gonna be a hot summer!! Then no cops, no firemen this city will melt.
Posted 03:43 PM, 11/06/2008
Scooter
god bless Barack Nutter
Posted 03:45 PM, 11/06/2008
dartvader
This city will never sustain itself with half its working-age residents unemployed or incarcerated and most of the rest underemployed.
Posted 03:48 PM, 11/06/2008
PattyJo
I don't live in the city (thank God), but I suppose cuts have to be made. I feel that closing the city pools will cause an increase in the crime rate (which is higher in the summer anyway). The pools give kids (and adults) a place to cool off during our hot summers. I'm afraid this cut is going to backfire (no pun intended).
Posted 03:48 PM, 11/06/2008
SteveV
The fat should be trimmmed, however nothing is mentioned of the extremely obese city council. Is Goode's aid still making over $80k for wash-washes?
Posted 03:50 PM, 11/06/2008
Phillymatt19
I hope everyone realizes now that it is going to take that much longer for fireman to respond with these cuts.
Posted 03:53 PM, 11/06/2008
CD75
Philly is a preview of Obamanomics. A dem controlled city for 60 years, a "soak the rich" tax policy, bloated entitlements and health care benefits, thug unions which control the politicians, leaders who promise "change" and "reform" but once elected do nothing. Welcome America to Obamanomics.
Posted 03:55 PM, 11/06/2008
WaltRiceJr
Don't worry, Obama's gonna save us!
Posted 03:57 PM, 11/06/2008
A Faust
This is unbelieveable Mayor Nutter. We elected you so that our city government would function in the way that benefits all citizens. Instead we find that it's "business as usual" for you. You stand by and do nothing about the behavior of city employees, those (I'm sure there are more than one) who file timesheets and don't show up for work. Those salaries could keep a library or a pool open. It's hard to believe an administrative assistant should earn $90,000 a year. You pass the buck to City Council to monitor their own. These people work for the citizens of Philadelphia and we expect you as the chief executuive to act on our behalf. Now you close fire houses?? I'll bet when the rich condo owners realize that those center city high rises are to be assigned to fire house almost in West Philly, you'll change your tune for them. No pools?? Oh Mike, we can't take this!!!
Posted 03:59 PM, 11/06/2008
Shabba Rommel
Its about time! City budget has been bloated for years resulting in overly excessive taxes. People need to stop looking at government for jobs and get out into the private sector. Get some money from the Unions too...they hurt employement in the city by scaring away employers.
Posted 03:59 PM, 11/06/2008
mikedee
this is a disgrace. an absolute disgrace.
Comment removed.
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The Philadelphia Inquirer's Jeff Shields, Marcia Gelbart, and Patrick Kerkstra take you inside Philadelphia's City Hall.
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