City of Phila. Still Bleeding Red Ink; More Budget Cuts Ahead
by KYW's Mike Dunn
The Nutter administration on Monday convened a meeting with City Council members to deliver more grim economic news: the city has a new and unexpected budget deficit, topping $30 million.
Top aides to the mayor told councilmembers that despite months of cutbacks, the government at this point has a $31-million deficit in the current fiscal year, which ends next July.
City budget director Stephen Agostini says a lot of factors are to blame -- especially declining wage tax receipts:
"Employment is down in our city as it is nationally. Wages are down and not growing at the rate that they were two years ago, a year and a half ago. That has lowered our wage taxes by about three percent."
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