Despite an olive branch from Mayor Street on Tuesday, City Council now appears poised to move forward today on its own 2006 city budget, rejecting many of the mayor's controversial cuts in libraries, museums, and the recreation and fire departments.
If Council carries out what many members yesterday said was likely, it would set up a showdown similar to last year's bitter budget drama.
But Street in a letter to Council has offered to restore funding to the libraries, the cultural groups and the Recreation Department. Only on the Fire Department, against which Street wants to save $6.8 million by cutting four ladder and four engine companies while adding eight medic units, is the mayor refusing to budge.
Councilman Frank DiCicco, whose district faces the biggest Fire Department changes, said the Council proposal calls for restoring full funding to the department.
Councilman Brian O'Neill said Street needed to be flexible on this issue. "It just can't be a line in the sand," O'Neill said.
"Before we're done, the Fire Department will be restored to some level."
Councilman Darrell Clarke, one of the mayor's closest allies on Council, said that both sides have made reasonable suggestions. He prefers to wait on the budget until June 2, when three Street proposals for new revenue could be ready for a vote.
A new billboard licensing bill, a billboard excise tax of 7 percent and a change in the city parking tax to cover valet parking operations could raise $7.6 million annually, according to Street's letter.
But Street also warned that a new trash contract, which is being negotiated, could cost $2.4 million more next year. If the city is forced to pick up trash for the city's condominium owners, the cost next year could reach $5.7 million.
In short, Street cautioned Council against adopting a "bogus budget."
Majority Leader Jannie Blackwell agreed that the main sticking point is the Fire Department funding. She was not optimistic about restoring funds. "We'd all like to do it, but I don't know how," she said.
DiCicco said Council's proposal would reduce the budget surplus from the paltry $19 million out of a $3.46 billion budget to $15 million. But he said the city could cut costs by not floating bonds to pay for the proposed expansion to the Free Library's main building, instead using existing money held by the Pennsylvania Intergovernmental Cooperation Authority.
Also yesterday, Joseph Vignola, PICA executive director, the city's budget watchdog agency, sent a warning letter to Street and City Council, predicting $116 million in red ink by July 2009 under Street's current five-year budget plan.
"Unless these shortfalls are addressed, the plan will not be approvable," Vignola warned.
That scenario could be dire for the city. Street acknowledged as much, saying PICA could withhold $220 million in wage tax revenue if the plan isn't approved.
Meanwhile, Nutter said he will amend his business privilege tax bill today, reducing the tax cut over five years from $141 million to $14 million.
"This is a modest, yet important proposal," Nutter said. "At the same time, this is fiscally responsible," he said.
Distributed by the Associated Press
