Philadelphia Mayor Jim Kenney proposes $6 billion budget
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Mayor Jim Kenney is proposing a $6.1 billion budget with no property tax hike as city officials plan for what they believe will be a mild recession.
Driving the news: Kenney’s plan would boost spending by more than 4% amid a budget shortfall in the coming year, officials revealed during a budget briefing on Wednesday.
Why it matters: The city is dealing with a double whammy of inflation that has driven up costs and pandemic-related issues that decreased revenues.
State of play: The city is facing a budget gap of more than $113 million.
- Kenney plans to plug the shortfall by tapping the city’s surplus and using $391 million from the federal pandemic aid the city received two years ago, Finance Director Rob Dubow said.
Zoom in: The city will skip new property tax reassessments this year, which is expected to keep property revenues flat.
- That’s because the assessments office is working through about 20,000 reviews from residents challenging their reassessments from last year, Dubow said.
One of the few big-ticket items earmarks $31 million for a pilot program to provide free SEPTA access for residents near or at the poverty level, or about 25,000 people.
- The plan also sets aside $9 million to provide free transit for city employees, a pilot program to help attract and maintain workers.
By the numbers:
- The Police Department is slated to receive $855 million, up more than 8% over last year.
- The Free Library is expected to get nearly $71 million, a boost of more than $12.5 million over last year that city officials say will ensure six-day-a-week service throughout the system.
- Violence prevention spending would rise to $233 million, up about $25 million from last year.
What they’re saying: The city’s finances are “tentatively stable,” which Dubow said is due to the infusion of federal funding in previous years.
- Managing Director Tumar Alexander said the plan is similar to recent budgets but also solidifies the priorities of the administration, including violence prevention, street paving and other basic services.
What’s next: Budget hearings will begin in the coming weeks.
- The City Council has until July 1 to adopt a spending plan.