City Council began hearings on Mayor Nutter's proposed capital budget on Tuesday. Capital budget expenditures – as opposed to operational budget -- are mostly used to make investments in the city's infrastructure – everything from bridges and buildings to new roads and major repairs. Capital spending is to a city what home improvements are to the rest of us -- easy to put off from year to year because they seem too expensive. ($40,000 for a new roof?! Just buy another bucket.)
The city hasn’t spent much on capital improvements over the last few years and the amount has been steadily decreasing: $75 million in ’05, $69 million in ’06, $63 million in ’07, and $57 million in ’08. Nutter’s plan for $121 million in spending is the largest outlay the city has seen since 2002 and includes $9 million to expand the central branch of the public library, $2 million to upgrade communication technology for firefighters, and $4.5 million to improve facilities in Fairmount Park.
Proposals from the Nutter Administration to increase capital spending are partially in response to a study of the city’s infrastructure done last year by the Pennsylvania Intergovernmental Cooperation Authority. PICA conducted an assessment of city facilities in five areas: police, fire, public health, prisons, and City Hall. The agency found that Philadelphia has spent far too little on infrastructure and recommended a major boost-- $143 million over four years-- in funding for capital spending on areas covered in the report. You can read a summary of the report by clicking here.
The challenge for the Nutter Administration is balancing between investing in existing facilities and spending capital dollars on new initiatives. Every mayor wants to put money into new areas that they believe will improve the city. It must be annoying to have to plow millions of dollars into infrastructure that has been neglected for years.