Philly's budget crisis is a lot worse than the first snapshot Mayor Nutter gave back in November.
Between now and 2014, the city's expenses are $2.4 billion dollars more than what it can afford.
To balance the budget, the amount of money going out has to go down and the amount of money coming in has to go up.
In his budget proposal Thursday, the Mayor outlined his plan to balance the budget in the next five years. He called it a budget for the people. It includes tax hikes, changes to health benefits and retirement plans for city workers, a hiring freeze, wage freeze, furloughs this year and next, elminating 250 jobs and slashing overtime.
Balancing the Budget: By the Numbers... all 82 pages
Top Ways to Boost Revenue:
- Temporary property tax increase of 16 mills in FY10 and 12 mills in FY11: over $270 million from FY10-FY11
- Temporary 1% sales taxes increase in FY10-FY12: over $340 million from FY10-FY12
- Fees for commercial trash collection: $7 million annually
- Increasing Fire Department EMS fees: $5 million annually
- Enhanced efforts to collect delinquent taxpayer collections: $8.2 million annually
- Increased fines and fees: $4.8 million annually
Top Ways to Cut Costs:
- Furloughs for exempt employees in FY09 and FY10: $1.7 million in FY09 and FY10
- Salary reductions in the Mayor’s Office and the Managing Director’s Office: $400,000 annually
- Reduced employee overtime city-wide: $18.5 million annually
- NEW: Additional employee overtime reduction: $2 million annually
- Eliminated vacant and filled positions city-wide (approximately 800 full-time and 2,000 part-time and seasonal positions): $33.6 million annually
- Consolidated information technology operations: $850,000 annually
- Closure of approximately half of the City’s 73 pools: $1.4 million in FY10 and $3 million annually in FY11-FY13
- Reductions in Free Library staffing, materials and supplies: $4 million in FY09 and $8 million in FY10-FY13
- Suspension of City-funded wage and business privilege tax (BPT) cuts until FY15: $230 million over FY09-FY13
- Eliminated bulk and tire collections, and special collections for leaves: $1.2 million annually
- Fleet reductions: $8.4 million
- Reductions in Arts and Culture: $3 million annually
- Waste minimization efforts in the Streets Department: $2 million annually
- Energy efficiencies city-wide: $1.5 million in FY10 and $3 million in FY11 and FY12
- Staff reductions city-wide (approximately 250 positions): $11 million annually
- Anticipated savings from pensions, health benefits, and work rule changes: at least $25 million annually
- Freezing civilian police hiring: over $700,000 annually
- Reducing demolitions by the Department of Licenses and Inspections: $2.1 million annually
- Instituting a utilization review process related to prescription medications: $1.125 million annually
- Eliminating reserve for city–wide wage increases: $180 million from FY12-FY14
- Changes in pension amortization assumptions: over $330 million from FY10-FY14
