Despite concerns, Nutter's fiscal plan approved
THE STATE BOARD that oversees Philly's finances unanimously approved Mayor Nutter's five-year plan yesterday, despite calls from the city controller and the board's own staff to reject it.
Members of the Pennsylvania Intergovernmental Cooperation Authority (PICA) spent an hour questioning the administration about low fund balances in the later years of the plan and about the city's unresolved labor disputes.
PICA interim Executive Director Steve Camp-Landis said the board should reject the plan because it lacks details on how to deal with potential cost increases. City Controller Alan Butkovitz also recommended disapproval because of low fund balances, bottoming out at $8.5 million at the end of the plan, which will take place under the next mayor.
But in the end, the board voted 5-0 to approve the plan.
PICA must annually approve the administration's five-year financial plan for the city to continue receiving state aid. PICA Chairman Sam Katz said that although he has major concerns about the plan, they did not justify withholding $350 million in state aid and sending the city's finances into a tailspin.
- Sean Collins Walsh