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Nutter discusses fiscal problems amid recovery

Furrah Qureshi

Issue date: 11/20/09 Section: News
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Media Credit: Mike Arrison

In a panel discussion on the welfare of cities during the recession, Mayor Michael Nutter expressed exasperation towards the state and federal governments on the issue of allocating funds. With three other mayors from major cities present, the general consensus was that in regards to local government, the recession is not over.

On Nov. 19, mayors from Philadelphia, Pa., San Jose, Calif., Mesa, Ariz., and Bowling Green, Ky., convened in Washington D.C. to hold the discussion. The event was sponsored by the Brookings Institution and the National League of Cities.

According to the mayors, deep budget gaps have forced them to cut funding for even the most basic of services, like the police and fire departments. Nutter emphasized the need for changes to spending habits.

"Change has to come and this moment of crisis is going to force it," Nutter said.

Nutter stated that Philadelphia's budgetary issues affected the economic climate of the surrounding suburbs of Philadelphia as well as the city.

Nutter also stated that Philadelphia has only received $14 million of the $157 million of "awarded" stimulus money.

Philadelphia, like many other cities, has implemented local level changes to compensate for the lack of funds. The city has temporarily increased the sales tax from 7 percent to 8 percent. Mesa Mayor Scott Smith was forced to make a similar change at the local level when he levied a property tax for the first time in the city.

"What's going on, as the unemployment rate goes up and as fewer people are paying taxes, that's also causing additional stress and strain on the city government," Nutter said.

In the wake of all the changes Nutter has implemented, and all the problems he still faces, Nutter kept a humorous outlook. He insisted that he wouldn't use the word "cut" anymore, preferring the term "reduce our services."

"It does sound nicer. If you can get away with [saying 'cut'] at a town hall meeting, I'll give you $100."

While those present took a moment to laugh at Nutter's joke, the discussion resumed in a more serious tone as the mayors emphasized how challenging running a large city can be.
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