By Jon Hurdle
PHILADELPHIA, Sept 4, (Reuters) - Pennsylvania's House of Representatives on Friday delayed a vote on a bill that would throw a financial lifeline to Philadelphia, pushing the city closer to its deepest spending cuts in over 50 years.
The Democratic-led House now will not vote until September 10 on whether to let Philadelphia raise its sales tax and defer pension payments, Brett Marcy, a spokesman for the majority leader, said by telephone.
The measures would save Philadelphia $700 million and allow it to balance its fiscal 2010 budget.
The House plans to hold its vote on the same day that Philadelphia will put vendors and service on 30 days notice that it is axing programs under its so-called doomsday budget.
The cuts include 3,000 jobs, closing all libraries, recreation centers and some city departments, and reducing services, including trash collection.
On Tuesday Philadelphia was forced to line up a $275 million loan from JPMorgan Chase to pay vendors who have been waiting since July.
Pennsylvania lawmakers have yet to approve a new budget for the state more than two months after the deadline and Luke Butler, a spokesman for Democratic Mayor Michael Nutter, said by telephone that the city cannot delay its cutbacks because it is legally required to run a balanced budget,
'We are disappointed at the change in schedule,' Butler said. 'It pushes us two days further down the road.'
For details on the state budget fight and Philadelphia's loan, please click on: and.
Delaying Philadelphia's bill allows the House to weigh amendments the Republican-controlled Senate inserted that would allow the state to take over the worst-performing municipal pension funds. The House's original bill only dealt with Philadelphia's financial proposals, said Marcy, a spokesman for House Majority Leader Todd Eachus.
Pittsburgh and other cities affected by the Senate amendments raised objections, as did police and firefighters' unions, who feared it would reduce pension benefits.
The House will work through the Labor Day holiday and then send a revised bill back to the Senate. 'The urgency of this situation for Philadelphia is lost on no-one,' Marcy said. 'But at the same time, we need to get this right,' he continued.
Rep. Dwight Evans, chairman of the House Appropriations Committee, aims to address the concerns the cities raised.
'I am troubled that we were not able to deal with the statewide pension issues in a separate piece of legislation because it delays our ability to help Philadelphia,' he said in a statement.
Evans continued: 'I am also deeply concerned that 3,000 people employed by the city could get layoff notices. But the changes to the bill were significant and our members and constituents raised significant concerns.' Keywords: PENNSYVLANIA BUDGET/ (Editing by Diane Craft; E-mail: joan.gralla@thomsonreuters.com; Reuters Messaging: joan.gralla@thomsonreuters.com; +1-646-223-6345) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
PHILADELPHIA, Sept 4, (Reuters) - Pennsylvania's House of Representatives on Friday delayed a vote on a bill that would throw a financial lifeline to Philadelphia, pushing the city closer to its deepest spending cuts in over 50 years.
The Democratic-led House now will not vote until September 10 on whether to let Philadelphia raise its sales tax and defer pension payments, Brett Marcy, a spokesman for the majority leader, said by telephone.
The measures would save Philadelphia $700 million and allow it to balance its fiscal 2010 budget.
The House plans to hold its vote on the same day that Philadelphia will put vendors and service on 30 days notice that it is axing programs under its so-called doomsday budget.
The cuts include 3,000 jobs, closing all libraries, recreation centers and some city departments, and reducing services, including trash collection.
On Tuesday Philadelphia was forced to line up a $275 million loan from JPMorgan Chase to pay vendors who have been waiting since July.
Pennsylvania lawmakers have yet to approve a new budget for the state more than two months after the deadline and Luke Butler, a spokesman for Democratic Mayor Michael Nutter, said by telephone that the city cannot delay its cutbacks because it is legally required to run a balanced budget,
'We are disappointed at the change in schedule,' Butler said. 'It pushes us two days further down the road.'
For details on the state budget fight and Philadelphia's loan, please click on: and.
Delaying Philadelphia's bill allows the House to weigh amendments the Republican-controlled Senate inserted that would allow the state to take over the worst-performing municipal pension funds. The House's original bill only dealt with Philadelphia's financial proposals, said Marcy, a spokesman for House Majority Leader Todd Eachus.
Pittsburgh and other cities affected by the Senate amendments raised objections, as did police and firefighters' unions, who feared it would reduce pension benefits.
The House will work through the Labor Day holiday and then send a revised bill back to the Senate. 'The urgency of this situation for Philadelphia is lost on no-one,' Marcy said. 'But at the same time, we need to get this right,' he continued.
Rep. Dwight Evans, chairman of the House Appropriations Committee, aims to address the concerns the cities raised.
'I am troubled that we were not able to deal with the statewide pension issues in a separate piece of legislation because it delays our ability to help Philadelphia,' he said in a statement.
Evans continued: 'I am also deeply concerned that 3,000 people employed by the city could get layoff notices. But the changes to the bill were significant and our members and constituents raised significant concerns.' Keywords: PENNSYVLANIA BUDGET/ (Editing by Diane Craft; E-mail: joan.gralla@thomsonreuters.com; Reuters Messaging: joan.gralla@thomsonreuters.com; +1-646-223-6345) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.