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Coronavirus Economy: Sources Say As Much As $700 Million Will Have To Be Slashed From Philadelphia's Original Budget Plan

PHILADELPHIA (CBS) -- Philadelphia Mayor Jim Kenney is warning the economic pain in Philadelphia is just getting started as the coronavirus is wrecking city revenues. Kenney is now having to complete a sweeping revision of the city's budget.

"It was a little over four weeks ago I went to City Council chambers and presented our budget and five-year plan. Frankly, it seems like an eternity ago," Kenney said. "Now as I sit here, it is clear that with shuttered businesses and jobs lost throughout the city, region and nation, that budget is no longer a realistic spending plan."

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Sources tell Eyewitness News that as much as $700 million would have to be slashed from the original budget plan. In March, Kenney proposed a $5.2 billion budget for the next fiscal year.

The mayor stopped short of elaborating on the potential for layoffs and furloughs for city employees and the impact on city services.

"It will affect things that people care about and expect from their city government. I know full well that any reduction in city services will be painful. You rely on those services, we all rely on those services and we deserve those services. We will work extremely hard to minimize those impacts," Kenney said.

With a citywide shutdown of schools and non-essential businesses coinciding with state mandates, many cities like Philadelphia find itself in uncharted territory as unemployment rates rise, along with the number of coronavirus cases in an ongoing pandemic.

"It's unprecedented the fact that it's almost like a depression and a pandemic at the same time," Kenney said.

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The mayor will be working to reassess the city's budget and plans to resubmit a more realistic plan to address overwhelming needs on May 1.

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