Ever since the darkest days of the 1990s, Philly's fiscal health has seemed to the casual observer (that is, me) to be...okay. Precarious, yes, but certainly not as bad as it once was. And sometimes there are distracting instances of found money, such as a budget surplus.
But PICA, the city budget watchdog, over the intervening years has continued to watch carefully the real status of our city budget. And now they've got a new report out that's nothing short of scary.
The Next Mayor is going to walk into office with budget problems. "The general fund's balance will have dropped $130 million - 65 percent - in three years," PICA wrote in an op-ed in the Daily News today. Health insurance costs and pension liabilities are growing. $45 million in the budget is supposed to come from a PGW loan that probably won't be paid back. There's no Rainy Day fund.
PICA offers its set of suggestions. Frankly, they are the kind of long-term change that is difficult and slow, if it can even happen.
Check out the report, and tell us what you think.
I think we're going to start asking the mayoral candidates about their budget-balancing backgrounds as well.
(edited to add) Listen to Brenda Jorett's conversation with PICA chief Rob Dubow.
Comments (2)
I don't know whether to laugh or cry at the part about PGW. The odds seem so long that PGW would be able to pay that $45 million in 2009. It's like if I was budgeting next month based on my expectation that I would win the lottery.
To borrow from Bill Maher:
NEW RULE: No more counting of imaginary money in the city's revenue predictions. Well, at least not more imaginary than anticipated tax revenues.
Posted by Dan | September 14, 2006 9:55 AM
BTW, I don't know how "short-term" you consider those suggestions I just wrote. The pension and healthcare coverage changes could probably kick in pretty soon, so I think at least those should be considered "short-term"
Posted by Dave | September 14, 2006 2:26 PM