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Philadelphia City Council Begins Budget Hearings

By Pat Loeb

PHILADELPHIA (CBS) -- Philadelphia City Council began hearings Tuesday on the city budget, including a proposed tax on sugary beverages to pay for ambitious new programs.

The three-cents-an-ounce soda tax would raise $400 million over five years.

"We're projecting that there'll be a significant decrease in consumption and that people will move to other beverages," said Dubow.

Dubow says that happens faster the higher the tax, so that the first one cent raises more than the third cent, but he says it all is needed to fund the Mayor's agenda, including universal Pre-K and renovations to rec centers and libraries.

The latter item led to a testy exchange between council president Darrell Clarke and deputy managing director Brian Abernathy about achieving a diverse workforce on those projects.

"You don't know what you're talking about," started Clarke.

"If you don't want me to answer the question, that's fine, but I do think...," Abernathy began to respond.

"Well, I'm not going to let you give me a bunch of you know what," interrupted Clarke.

"I'm not going to give you a bunch of you-know-what," answered Abernathy.

Administration officials say they found that to be a good sign because, if they're taking those projects seriously, they haven't ruled out the controversial soda tax that would fund them.

Council members were skeptical though, asking whether low-income neighborhoods would bear the brunt of the tax.

Hearings are scheduled through May.

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