Philadelphia avoids layoffs, service cuts
Philadelphia officials have cancelled “Plan C” for balancing the city’s budget as a result of the Pennsylvania legislature’s approval of House Bill 1828, which will allow the city to issue a temporary sales tax hike and give it a two-year reprieve on city pension payments. Plan C could have resulted in 3,000 layoffs of city employees and cuts to library, recreation and health services.
City officials had said that Plan C would result in “devastating” cuts, but the new legislation will give Philadelphia a chance to raise or save the $700 million it needed to keep the city in full operation.
“It was the hard work, dedication and commitment of our public employees that helped ensure this success, and I want to take this opportunity to sincerely thank them for what they do every day,” said Mayor Michael Nutter in a statement. “This has been a tough year. The worldwide economic crisis hit us hard. But, we rolled up our sleeves and met the crisis head on. Thank you and well done.”
More information on Philadelphia’s budget crisis is available at http://cityofphiladelphia.wordpress.com/?s=plan+c.