More cuts in offing as city tax revenue lags

MORE BUDGET cuts appear to be looming for the city, due to weak tax revenues in the first few months of the fiscal year.

City department heads are being asked to prepare plans for 2 percent budget cuts that would take effect in the next few months, according to multiple City Hall sources. The police, prisons and fire departments would likely be exempt from those cuts, sources said.

"We're in the very early stages of discussion," said mayoral spokesman Mark McDonald.

Several weeks ago, Mayor Nutter sent a warning letter to City Controller Alan Butkovitz, noting that the city's tax revenues were below projections for July and August, putting the city on track to end the fiscal year next June 30 with $60 million less in revenue than expected.

In 2008, the city was forced to make major budget cuts after the stock market crashed, wiping out 20 percent of the city pension fund's value.