The City ticks down to layoffs and the closing of libraries and rec centers as the implementation of Plan C nears.
Mayor Michael Nutter announced cuts last week as a result of the delay in passing needed legislation to balance the City's five-year plan (Staff Photo by Greg Bezanis).
The City waits as House Bill 1828 weaves its way through Harrisburg, but without action soon, Philadelphia will be forced to follow through with its dreaded Plan C.
The plan, also known as the Doomsday Budget, includes the layoff of 3,000 City employees and the shutdown of numerous departments. The dismantling has begun, and the process must be accomplished by November to ensure the City does not run out of cash. It could reverse course with its enactment contingent on the actions of the Senate.
Philadelphia's Finance Director Rob Dubow testified before the Senate's Finance Committee last Wednesday. The committee unanimously voted in favor of amended House Bill 1828, which would alleviate the City's financial troubles with a 1-percent additional sales tax revenue and the deferment of pension payments, Monday with a second consideration Tuesday. The bill was set to head to the Senate floor around 6 p.m. yesterday after an additional amendment earlier that morning, according to Erik Arneson, a spokesman for Senate Majority Leader Dominic Pileggi.
Amendments included eliminating the Deferred Retirement Option Program for future elected city officials; creating a statewide code of conduct for pension systems; and requiring bankrupt systems to be taken over by the state's Municipal Retirement Board.
"I believe those reforms are necessary, both to improve the long-term health of municipal pension systems in Pennsylvania and to win the support of a majority of the Senate for this legislation," Pileggi said.
City Council President Anna Verna sent a letter to Mayor Michael Nutter, Dubow and her fellow members of Council waiving Council's need to approve Plan C, allowing it to go straight to the Pennsylvania Intergovernmental Cooperation Authority (PICA). The latter oversees the city's finances.
"This revised plan is terrible," she said in the letter Monday. "It is cruel. It dashes the hopes for a vital, thriving city. Yet, as wholly unacceptable as it is, it is a necessary interim response to PICA as we await needed action in Harrisburg."
If the plan takes effect, the Free Library system, Fairmount Park Commission and Recreation Department would cease operations saving $29.6 million, $11 million and $30.8 million, respectively, according to Plan C specifics released last week.
The Streets Department would reduce trash pickup to biweekly; remove cans from streets and bulbs from about 4,000 street lights; and switch 1,000 traffic signals to flash red, saving $14.4 million.
Two health centers, which have not been determined, will close up shop cutting $4.7 million.
The Police Department will be down 972 positions, 929 of which are officers, totaling a savings of $43.9 million in addition to $16.7 million from the Fire Department and its loss of 36 officers, 120 firefighters and 40 paramedics and the shutdown of six engine companies, three ladder companies and five advanced life support medic units.
The First Judicial District Court, District Attorney's Office and Defender Association will be ripped of a majority of their funds -- totaling $114 million -- with some of it only restored in fiscal year 2011.
Millions of dollars will be cut across the board in departments such as finance, revenue, the Mayor's Office and records. A $5.7 million loss to the Planning Commission will stall many permits for projects.
The City is losing $10 million a month House Bill 1828 does not pass. The House passed it prior to the Senate's amendments Aug. 5.
Of the 10 largest U.S. cities, Philadelphia is ranked as the poorest. It also has the highest rate of obesity among the nation’s largest cities, according to the city’s Deputy Mayor for Health and Opportunity and Health Commissioner Don Schwartz.
Before Mayor Michael Nutter took the stage, the few hundred who gathered at City Hall's courtyard last week chanted "No budget cuts." "I agree with you," he shouted back.
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1. Scott34 said... on Aug 28, 2009 at 12:41PM
“Get rid of this educated moron.”