- And this blank page where my fingers move
- Pennsylvania Hunger Games Diet: Cash for Corporations, Cuts for Kids
- The Incredible Shrinking Mayor
- Multi-tasking with the 1% … killing the schools AND making the poor pay for their funeral.
- Council Can Give the SRC the Money to NOT Privatize the System
- Predatory Payday Lending Bill Flies Out of Cramped PA House Committee
- Let the Games Begin: PA Senate Announces Details of Budget Proposal
- Good News on PA Revenue But Don’t Count Your Blessings Just Yet
- Defeat Corbett
- Set off without a Paddle: Unpacking the School District’s Disaster Capitalism
City's Current Projected Surplus: 40 million dollars
Just so this doesn't get lost in the mix:
During Rob Dubow's testimony, he said that after their cuts, the City's projected 109 million dollar deficit has turned into a roughly 40 million dollar surplus. So if the City has to pay for libraries, they will... have a 36 million dollar surplus.
So, if the Mayor responds to this by slashing something else, or laying more people off, let's remember that as of right now, the Mayor can let this decision lie and listen to the will of the people, or, he can use it as an excuse to wreak havoc to show those petulant Philadelphians not to mess with him.
The people of Philadelphia do not want these cuts, and they are illegal. The City has a small surplus and can absorb these costs. When will the Mayor listen?


Here's the Mayor's Statement
from http://www.philly.com/philly/blogs/cityhall/Nutters_Statement_on_LIbrary...
Tuesday, December 30, 2008 FOR IMMEDIATE RELEASE
Mayor's Statement on Today's Court Ruling on Library Closures
Philadelphia, December 30, 2008- Mayor Nutter has released the following statement:
"We emphatically disagree with today’s decision by Judge Fox.
The decision flies in the face of the Home Rule Charter which is explicit in its allocation of powers between the executive and legislative branches of government.
It appears that the ruling excluded any consideration of the validity of the City Council ordinance on which the case was based. It ignored that the Charter allows the Mayor to make operational decisions and affords him the ability to run the City. In effect, the ruling would make every operating decision a political one.
This decision is larger than an opinion on these particular library facilities. Instead, it fundamentally alters the relationship between the Mayor and City Council. The City would grind to a halt if consensus of 18 independently elected officials were required for every decision.
On this basis alone, we intend to appeal the ruling.
Unfortunately, the City is still faced with an unprecedented financial challenge and our fiscal condition continues to deteriorate – even by the day. We will immediately seek ways of preserving the $36m over five years in savings that was associated with our original plan.
In the meantime, we will make every effort to comply with the judge’s order and will make the necessary operational changes to be compliant"
To put the mayor's p.r. mistakes in perspective
if Ron Dubow's numbers are correct, the Nutter administration has apparently found approximately $140 million in savings other than those associated with the libraries without the city's grinding to a halt, and without requiring any tax hikes that some of us think would chase away jobs; and so in fact the mayor could be reaping the earned benefits of this apparently real and apparently fairly (I stress: apparently fairly) painless belt-tightening...but instead, we find out about the savings in the most backward way possible, and he suffers the worst p.r. day of his administration.
This after we find out that he and the Free Library are planning two new regional libraries, not by their announcing them or, Whatever forbid, explaining them, but by the proposals showing up in a wishlist he delivers to the president elect.
An executive's job, unlike a legislator's job, is partly a salesman's job. She or he not only has to explain policies and new initiatives, she or he has to sell them to a skeptical public, even when the public doesn't get a direct say in a policy or an initiative.
This is not Michael's favorite part of the job, I know. But if he spent more time making his plans and goals public, he'd have more opportunities to toot his own horn, and he wouldn't end up in ridiculous situations like the one he finds himself in today.
Proposed solutions, off the top of my head
Put all the damned budget numbers online and update them weekly (not salaries, which can be listed simply as Personnel, but everything else, as specifically as possible. Why not?)
During periods of flux, have a designated person from the administration, not the mayor necessarily, hold a weekly press conference to explain any new changes in spending or new initiatives.
Re: the libraries, apparently some people in the Free Library administration have had some alternative vision of how the system should run for some time. Siobhan Reardon has communicated at times, in some ways, the goals of committing to 6 day per week service and to making Parkway Central a real college-level research library; these are worthy goals, especially if the Community College -- which has a terrible library -- is to play a larger role in the city's future economy. Give her and the Free Library some time to regroup and put together a real, detailed plan, and then give them the task of selling that too.
But don't go on trying to push the current plan, and stop the practice of behind-closed-doors meetings, and the promises of alternative services at alternative sites that have no meat on them.
I wish you were right, Sam
I'm just back from ten days away, and though I tried to keep in touch a little by email, I really needed some time off and I've not been reading the blogs and the papers.
Having said that, I find your analysis a little perplexing. Michael Nutter has always been excellent at PR. As a member of council he consistently found issues to push that had broad support among important constituencies (and that sometimes had support among a few constituencies that didn't always see eye to eye). He presented those issues in ways that maximized their political drama, creating good guys (which he lead) and bad guys (which he opposed). And he was the favorite of the press and endlessly and effectively worked them.
Or don't you remember how Michael Nutter championed tax cutting and ethics reform. Or have you forgotten how he worked with the Committee of Seventy and Neighborhood Networks to build support for two sets of Ethics Charter Changes that won by an record margins and that were widely, and rightly, intepreted as major steps toward reform of the city?
So the difficulties the administration has been having on the library issue and the larger issue of the budget must have deeper sources. I've been thinking about where the problems lay and have some very tentative ideas about how to interpret these misteps. But I've got to think a lot more (and get some sleep) before I put them forward.
One quick, somewhat facetious, suggestion: Michael Nutter has hired a lot of out of towners because he did not want to continue the usal defective practices of our city government. Maybe we need to borrow and idea of the ancient Greeks did and actually get a Mayor from out of town. The kinds of errors this administration has been making look an awful lot like the kinds our Mayors and Council members have been making for decades.
Out of Towners Lack Independent Judgment
The problem with out of towners is that they have no basis of independent judgment, or any real commitment to Philadelphia's future. In all likelihood, they will not be here 5 or 10 years from now.
As a result of the dismal first year of the Nutter Administrtion, I am a lot more sympathetic to idea that high-ranking city officials should have a three year residency requirement in Philadelphia, just as the Mayor does.
One quick, somewhat
That reminds me of the real estate tax seminar that Phil. Forward put on at Temple about 20 months ago. Mayor Reed of Harrisburg was there to talk about how his city came back from the brink (obligatory tip of the hat to the land value tax)from bankruptcy. He spoke about all the issues his city faced and all his strategies and tools. He truly wowed the crowd. Al Taubenberger stood up and asked Mayor Reed if he'd care to come to Philadelphia and be Mayor. Mayor Reed declined, politely :)
Josh Vincent
www.urbantools.org
www.ourcommonwealth.org
Phree Philly
Little Certainty In Revenue Or Spending Projections
There is little certainty in revenue or spending projections.
The city is preparing for worst case scenarios at a time in which the price of gas has plummeted, interest rates are at a sixty year low, inflation has clearly been beaten, outsourcing of jobs has been greatly reduced, and illegal immigration is far lower than it has been for a long time. All indicators are not positive, but there are enough positive indicators to demolish the argument that we are on the cusp of another Great Depression.
The city may well finish the first six months of the fiscal year only $10 to $35 million behind the revenues projected before the start of the fiscal year, and may do better in the second half of the fiscal year than in the first half.
Except for a rapid decline in real estate transfer taxes, the city of Philadelphia is holding its own in other tax categories, and should run ahead of before the start of fiscal year projections in several.
Just as with President Bush's attempt to panic Americans into cutting Social Security benefits through doom and gloom predictions, Mayor Nutter's attempts to cut library and other services through doom and gloom predictions will also fail.
Someone should remind Chris Brennan
It's funny to contrast this post--which reports a $36 million surplus after restoring library service and personnel--with the lede in Chris Brennan's DN piece today:
In point of fact, the ruling is NOT in any way a crushing blow. It's a minor expense compared to the sum of the projected SURPLUS.
Later in his piece, Brennan says:
So that means that if the total surplus was devoted to the 11 library branches, we'd come up even, right?
It's interesting how much Mayor Nutter continues to have a handle on the coverage of his actions. The reality of Dubow's testimony is that the "crisis" the Mayor spoke about two days after the election in November is far from certain. I think that is a lesson to all of us as we go into the next budget fight to push harder and dig deeper from the outset to figure out the true scope of any "crisis."
Remind me of what? How to avoid context?
The part of my story you quote is based on all of Dubow's testimony, not just the one sentence you focused on. Dubow said the city would end FY09 with $36 million if the 11 library branches remained open. Dubow's next sentence was that the city would be in the red by the end of FY10 if they remained open.
Feel free to debate whether that scenario is accurate and/or important. I'm not taking a position one way or another. My job is to report the entire story, as best I can.
Who is missing context Chris?
You said:
The Mayor's plan was to achieve over a $100 m in savings in this budget year, right? Mostly those cuts were made and the only thing rolled back is the $8 m cuts from libraries. And in fact, the judge's order did not undo layoffs. So that means that keeping branches open will cost the city $8 m or less--possibly as low as like 4 or 5. Plus, Dubow testified that there is now a $40 m surplus projected. And since we are likely looking at larger scale budget cuts for 09-10, how plausible is it that keeping 11 branches open alone--at a cost of $8 m a year--is going to tip the scales toward the red then?
So how in any way can you comfortably call this ruling a "crushing blow"?
Dubow consistently tried during the hearing to take the focus off mid-year budget cuts and contextualize those as a part of a five-year plan. It's certainly fair of you to report that, but it would have been interesting to see what economists and other urban leaders who deal with these kinds of budgets think about that logic. Certainly the majority of Philadelphians think that Mayor Nutter should have delayed ANY cuts until the Obama administration got started. The current surplus is proof that a delay in budget cuts is possible.
Yet the Mayor has been very successful--if nothing else--at creating a sense of panic about this budget year seemingly independent of real local economic indicators. That is something we'd all do well to remember as we start to talk about next year's budget.
The $36 million over 5 years is .00176% of City's 5 year budget
That's right. The $36 mil represents well less than 1/10th of one percent of the City's projected spending during that period, which happens to be $20.4 billion. And that only includes spending from the General Fund. So to say keeping the branches open represents a crushing blow to anything other than the egos of those who came up with and promoted this plan, is simply bizarre.
Speaking of context
I hope that you will write a comprehensive story to give context on Nutter's comments about the difficulties caused by the ruling with respect to his plans for "alternative" ways to provide after-school services that students currently receive at libraries. Your article missed much of the relevant context, (and, unfortunately, I've heard Nutter's statements numerous times on WHYY - without context provided). Here's some context for you to consider:
The plan to close branches has been in place for what, months now? That plan has been the subject of much discussion, rallies, community meetings, for months. Suddenly, in the last week, after suits had been filed, Nutter begins speaking of his alternative plan to provide substitute services -- without any detailed explanation for how that plan will be funded or implemented.
Then, it turns out that these alternative plans coincidentally become a basis for his defense in the suit?
And then when the judge rules against him, he complains about the hardships the ruling causes to a plan that was never fully explained and proposed just a few days before the branches were slated to be closed.
Yet, this is the only context you provided on that issue:
not exactly
The reason that's not entirely accurate is that we consumed most of a 200 Million dollar surplus this year. that 36 million is what's left over. so minus the John Street surplus we are running a 160 Million dollar deficit this year. that 36 will be consumed next year even with library closures.
But 5 year budget plans are impossible predications, and dont really matter that much (take a look at the 5 year plan the Mayor submitted in February, pretty laughable).
What really matters is we have the money to keep them open this year without having to cut anything else. We can worry about next years budget when we get to next years budget. There is no need to close libraries in this fiscal year.
true
True, we did consume the Street surplus. However, either way, until they made their cuts, their projections were that we were going to be in the hole $109 million dollars at the end of the year, and after their adjustments, that no longer is the case, we will finish with a fund balance at the end of the year.
Anyway, I agree. The City can pay for them this year, and then in the budget cycle, with Council oversight, the City can figure out what to do going forward.
And, we should also be clear that he doesn't magically need to come up with a five year plan, as they seem to keep harping on. As long as the City appears to be doing OK, which it does, the next five year plan is not due until the budget cycle is completed. Again, meaning this can be done with normal oversight.
And
Remember that Nutter himself was going to draw down the Street surplus anyway, before the crises came.
Alleged crises
The "fiscal crises" are alleged "crises." They may exist, and they may not exist. Accepting their existence concedes more than a sober view of reality dictates. Dan has already made clear his agreement on this point through his documentation of Finance Director Rob Dubow's testimony on December 30, 2008, in which Dubow said that the city should have a $40 million surplus at the end of this fiscal year in June as a result of the budget cuts made.