We Got Your Budget Right Here

February 1, 2009

Steve Volk and Janine White, Philadelphia Magazine

There’s an old saying — never let a crisis go to waste. So far, though, Michael Nutter has done exactly that. Believe us, he knew how bad the budget crisis was before he took office. He even told us all about it in our November 2007 issue. Then he inexplicably passed a budget planning to overspend revenues by $144 million — a deficit that in recent weeks has ballooned to $2 billion over the next five years. These are our suggestions for how Nutter can get back on track — without shutting libraries and pools. The good news is, all he has to do is live out the narrative that carried him to victory in 2007: Reformer wins on a platform of change.

Unfortunately, the cleaner we elected was replaced by a mayor who behaves like he owes his victory to the Democratic party machine. It’s time for you to step up and do what you said you’d do, Mike, and we’ve got ideas on how to do it (prepared with help from Brett Mandel of the reform group Philadelphia Forward). There’s never been a time, or a crisis, like the present.

1. Unload Our Gas Company

A new study by the Economy League dubbed the Gas Works a “chronic” problem, with too many employees, a too-poor-to-pay customer base, and a governance structure that makes room for more than 30 (!) elected or appointed officials. And while the city is supposed to earn $18 million from PGW each year, in reality it gets nothing. The city could sell the thing, but who would buy it? Mandel says there’s a strong case to be made for giving the Gas Works away. The city shouldn’t be in the gas business, which forces it to act as both the landlord and the social service agency that lends the tenant aid. 

WHAT WE GAIN: If a private company takes over the Gas Works, we earn extra taxable revenue we’re not getting now on the land.WHAT WE SAVE: $1 billion in debt obligations...

http://www.phillymag.com/articles/we_got_your_budget_right_here/