Staff Editorial: Philadelphia budget woes over...for now

After 80 nerve-wracking days, the Pennsylvania state legislature finally agreed to measures that would potentially end the bitter budget fight in Philadelphia.

State legislators proposed a bill on Friday that would channel $700 million toward Philadelphia's budget over the next five years, despite concerns over city and state deficits. The decision comes as welcome news to the nearly 3,000 city workers who could have lost their jobs if the dreaded "Plan C" took effect. The $700 million will also go towards libraries, recreation centers, and trash collection costs that were tentatively on the chopping block in a "Plan C" budget.

In addition to increased state funding, the bill also calls for the state sales tax to go from seven to eight percent, with two percent of the funds going towards the $1.4 billion Philadelphia deficit. A 50-cent increase in the cost-per-pack of cigarettes will also contribute toward the overall city budget. Lastly, certain entertainment events and venues-museums, theaters, concerts, and zoos-will no longer be exempt from state sales tax.

This last tax has the city's cultural institutions particularly upset, and rightfully so. The city has stated that movies and sports events will remain exempt from sales tax-a move that many critics claim results from favoritism. Cultural institutions and concert venues already struggling in a tough economy will now have to deal with an added expense for visitors to consider.

Adding taxes to tickets or shopping trips may work in the short-term, but eventually Philadelphia (and Pennsylvania at large) will have to deal with the economic insecurities that created a budget crisis in the first place.

While Mayor Nutter and his team of advisers should be commended for their efforts to keep city departments from closing, the solution-to increase taxes and keep state funding-doesn't change the fact that many of these organizations cost millions of dollars to run.

Politicians and administrators are going to have to get creative when it comes to reducing costs and running agencies more efficiently. This may mean cutting jobs, taking pay cuts, redistributing some funds from more profitable departments, or closing branches. However they do it, city officials need to reexamine why the budget is so far in a hole and do what's necessary to fix it, not what will get them reelected. Making appeals to voters by flushing money in to save jobs is a good thing, but it won't actually preserve them long-term if the system remains unchanged.

Governor Ed Rendell recently said, "I know it's hard for the people of Pennsylvania to accept the fact that they are a winner but they are." While the optimism surrounding this budget deal is understandable, it is still unclear if there will be any winners when it comes to the state's budget concerns-especially for Philadelphia.

The Hawk Staff