Fiscal watchdog goes down to wire on city budget

Posted: September 06, 2012

WITH TIME running out, Sam Katz, board chairman of the city's fiscal watchdog, says he still hasn't decided whether to approve Mayor Nutter's five-year financial plan.

Katz and the four other board members of the Pennsylvania Intergovernmental Cooperation Authority meet Wednesday to vote on the plan. They delayed a vote last month after requesting and receiving information on how Nutter would pay for a potentially costly arbitration award for the city's firefighters.

Katz said that he is still talking with the administration about the award, which city officials say would add $200 million in costs to the five-year plan. The administration is appealing the award, but if that effort fails they say that they would pay for the award through severe service cuts.

"There are options beyond simply budget cuts," Katz said. "I'm dubious that that's how they're really going to deal with this."

If PICA rejects the plan, the board could cut off state funding to the city. PICA has not rejected a budget plan since the agency was established in 1991.

Finance Director Rob Dubow said that he was hopeful they could get on the same page.

"We're having ongoing conversations with PICA board members and I hope they will pass the plan," Dubow said.


Contact Catherine Lucey at luceyc@phillynews.com or 215-854-4172. Follow her on Twitter @PhillyClout. Read her blog at phillyclout.com.

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