No insult intended to the power of politics, but I really think the movement of money is a more powerful force in our city (and our nation, but that's another blog).
And I think mayoral administrations run well when they understand the enormous importance of managing the city budget successfully. That means not just living within the budget's limits, but also investing in goals and ideas that the city wants to acheive or make real. Like more robust economic development. Or an improved education system.
I sure wish we could spare some time right now thinking about what we'd like to invest in.
Unfortunately, we are going to have to spend the rest of the Street administration wondering how we'll squeeze the five-year plan back into balance, without devastating the city programs we care about.
Here's the problem: the city budget for 2008 is balanced only because the city is using some of the surplus built up over recent years. And, after that, the city's plan is seriously out of whack, spending more than we'll collect in tax revenue. Budget watchdogs are already sounding the alarm -- even talking about exercising their perogative to withhold wage tax revenue.
From Mark McDonald's story last week:
Rob Dubow, PICA's executive director, said yesterday that there's a "hole in the city plan that is hundreds of millions of dollars."
Joyce Wilkerson, Street's chief of staff, said, "We still don't have a good sense of how far off the five-year plan is right now."
Yikes. And there's more:
In the last few weeks, the mayor and City Council have agreed to new spending for the city schools that put the city's long-term finances deeper in the red: a real-estate tax shift that will cost the city treasury $97 million over five years and a $10 million payment for 2008.
Council also restored roughly $16 million of proposed spending cuts in the 2008 budget, but the problem is that the revenue isn't there in future years to support it.
The crisis shouldn't surprise anyone. Budget watchdogs PICA identified serious concerns in the current five-year plan long before the 2008 budget was decided.
Certainly, mayoral candidates Al Taubenberger and Michael Nutter know about it. They also understand that the person who wins office in November will have to present a five-year plan shortly after taking office, and then will have to negotiate new contracts with the city's labor unions. Both have mentioned opening early negotiations with the unions, given the seriousness of the situation.
But, stories like Mark's notwithstanding, I am not at all sure the rest of the city gets how serious this problem might be for Philadelphia. And I am not sure City Council helps when the budget for 2008 wins passage by avoiding tough choices.