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Nutter Warns Of More Cuts In City Services As Tax Revenues Tumble

PHILADELPHIA (CBS) – Mayor Michael Nutter is sounding a warning cry that the city’s economy is again slowing, thanks mainly to higher unemployment.

And he says the resulting drop in tax revenues could result in more difficult budget cuts this fall.

Philadelphia’s tax revenues had actually been heading upward for about year, at a level that the Nutter administration says was consistent with the national economy.  But what worries Nutter and his budget experts are declining tax revenues in July and August, specifically in the areas of wage and sales taxes.

The mayor spelled out his concerns in a letter to the controller, and says this could force him to slash city services.

Read Mayor Nutter’s Letter to Controller Butkovitz (.pdf format)

“We will certainly have to look at all of those, either cost reductions or spending restraint strategies, if these kinds of trends continue,” he told KYW Newsradio this morning.

The porject shortfall if trends continue is put at $60 million, including declines in the value of the city worker pension fund.

Nutter says he’ll wait until September figures are in before making any decisions about cutting the budget.

Reported by KYW City Hall bureau chief Mike Dunn

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  • willie

    Hey all, Tell this to the pricks collecting DROP pensions & still working. Better yet, let’s start with cutting the welfare checks a $100 per & then school lunches. When the hell was the law passed that said they can spawn babies but not feed or clothe them? How abot collecting those free cell phones paid for by the taxpayers & cut Medicaid as the ignorant don’t make Dr. appointments but just go to the E.R. room for care. Lot’s of savings I see.

  • John D.

    Wow here’s a big shock! Michael Nutter wants to cut, cut, cut city services, yet raise our taxes… Hey Mike if you cut more jobs then you lose more money! Not to add more foreclosure, more defaults on loans etc, etc… Does he want to have any tax paying citizens in Philly? I’m gonna go on a whim here and say he’s gonna cut… Wait let me see who his punching bag is ummm… Oh yeah the FIRE department! If he thinks we don’t notice he’s sadly mistaken!

    • PhillyMFM

      Hey John D I fully agree with your words. Let me take a thought a step forward and say our Mayor will send his new real estate pit bulls out and …… let’s jack up the people in NE, NW and center city their real estate taxes. Hey they had funds when they paid off our former school board super Arlene so Mayor Mike needs to dig deeper into his own budget pocket and leave us working folks out of the city delimma.

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