MAYOR NUTTER DELIVERS 2012 BUDGET ADDRESS

Fiscal Year 2012 Budget and Fiscal Years 2012- 2016 Five-Year Plan introduced to City CouncilrnPhiladelphia, March 3, 2011- Mayor Michael A. Nutter delivered his proposed Fiscal Year 2012 (FY12) Budget and Fiscal Year 2012- 2016 Five-Year Plan in his annual budget address to City Council. The Mayor’s proposed budget of approximately $3.4 billion includes no new taxes or fees, approximately $2.9 million in reductions and more than $34 million in new spending proposals. The FY12 proposed budget projects continued stabilization of tax revenues.rnrn“As we begin to see signs of an economic recovery, we’re proposing new investments to create a safer, smarter, greener and more business-friendly Philadelphia,” said Mayor Nutter. “Even though Philadelphians continue to struggle, we’ve identified targeted investments that will improve public safety and the overall quality of in Philadelphia.”rnrnSome of the Mayor’s FY12 spending proposals include:rno rno $6.4 million for a new class of 120 Philadelphia Police Officers.rno $4.4 million to fund the Office of Property Assessment’s evaluation of properties.rno $4.4 million to purchase new equipment and fund overtime for the Philadelphia Fire Departmentrno $4 million for snow removal efforts.rno $2.4 million to restore First Judicial District probation positions that were previously funded with ARRA dollars.rno $1.9 million for the District Attorney’s Officerno $1 million in funding for literacy efforts.rno $573,000 to fund the PhillyRising Program.rno $500,000 for a reward program to support the City’s efforts to apprehend criminal suspects.rno $180,000 to fund municipal swimming poolsrnrnProposed spending cuts and reductions include:rno rno Approximately $2 million in reductions to Philadelphia Prison System spending as a result of a decrease in the inmate population.rno $500,000 in savings from the Law and Finance Departments, and the Department of Licenses and Inspections- made possible through the elimination of unfulfilled job vacancies.rno A $388,000 reduction in the Office of Fleet Management’s equipment maintenance costs.rnrnFund balance levels in the Five-Year Plan are as follows:Fiscal Year 2012 $51 millionrnFiscal Year 2013 $63 millionrnFiscal Year 2014 $69 millionrnFiscal Year 2015 $42 millionrnFiscal Year 2016 $46 millionrnrnrnDuring the last two years, the City closed a $2.4 billion deficit in its Five-Year Plan, reduced annual spending by $130 million and eliminated 1,600 positions from the workforce through attrition. As planned, the City’s temporary one percent sales tax increase will expire in Fiscal Year 2015 and wage and business tax cuts that were temporarily suspended will be reinstated in Fiscal Year 2014.rnrnThe Mayor said, “The City continues to face a triple threat from cuts in federal and state funding as well as cuts to Philadelphia School District resources. We don’t know exact details yet but as we wait for possible cuts, we ask that these cuts don’t force us to balance our budget on the backs of those who are least able to carry the weight.”rnrnThe City may face funding cuts from state and federal governments. Governor Corbett will introduce his proposed budget to the Pennsylvania General Assembly on March 8th. Major pieces of legislation are being considered by the U.S. Congress, including House Resolution (HR) 1, which details $61 billion in spending cuts in the current fiscal year.