Philadelphia’s 5-year spending plan approved by state agency
Despite "many question marks," Mayor Nutter's spending plan for the next five years received approval today from a state authority that oversees the flow of city dollars.
Despite "many question marks," Mayor Nutter's spending plan for the next five years received approval today from a state authority that oversees the flow of city dollars.
The five-member Pennsylvania Intergovernmental Cooperation Authority unanimously backed Nutter's budget proposals for the 2009 fiscal year, which begins July 1, and for each year through 2013.
It did so, however, with some degree of reservation.
Most notably, while the authority commended the administration for setting aside $400 million over the next five years for increases in employee wages and benefits, it emphasized that more dollars may be needed once contracts are finalized with the city's four unions. Those contracts expire June 30; negotiations are ongoing.
In addition, the authority pointed out that by hoping to issue about $3 billion worth of pension obligation bonds, Nutter is taking on a serious matter largely ignored by past administrations. But if the city cannot issue the bonds, the result may be a shortfall of $200 million in the next five years.
Those are some of the "many question marks" highlighted in a report on the five-year plan released by the authority today.In its report, the authority also noted that the city's long-term spending plan assumes that casinos will begin generating fees to the city by 2011 - even though construction has yet to begin.
And like spending plans in previous years, the city asserts that it will receive $8 million it believes it is owed in sky box rental payments from the Philadelphia Eagles. That contention, first made in 2004, has resulted in no additional money to date.
The authority is required by state law to certify that the mayor's five-year plan is balanced. The authority determined that is the case, even with some of the outstanding questions, the report said.
