by KYW's Mike Dunn
Philadelphia mayor Michael Nutter says the city's cash crunch -- caused by the faltering global economy -- is getting worse by the minute. His staff now estimates a shortfall for Philadelphia of as much as $850 million over the next five years.
It was only last month that the mayor's number-crunchers warned of a $450-million deficit over the next five years (see related story). Now, Nutter says, they have upped that red ink prediction:
"We now believe that the budget deficit over the next five years will be at least 650 (to) 850 million dollars. As a result of these revised numbers, I am announcing further actions that we will take right now to address this situation."
Those actions include canceling bonuses due to non-unionized city workers.
Nutter has asked City Council and other elected officials to cut their budgets by five percent. And department heads who had already been ordered to belt-tighten must now do more.
Nutter will finalize those changes by month's end, so in early November expect the mayor to announce changes in city services to stem the red ink.
Despite all this, Nutter voices optimism:
"I am fully confident that the City of Philadelphia will weather this storm."
E-Mail Story
Print Story
