HARRISBURG, August 10, 2009 – State Sen. Daylin Leach (D-Delaware/Montgomery) today stood alongside members of the Philadelphia Senate Delegation, other fellow Senate Democrats, and members of the Fraternal Order of Police to urge the prompt Senate passage of legislation that would authorize Philadelphia to move forward with its economic recovery plan.
House Bill 1828 would authorize the City of Philadelphia to take actions to manage its pension obligations and impose a five-year, 1 percent sales tax increase. It would allow the city to more independently manage its finances in the hope of preventing potential economic fallout.
Leach noted that if Philadelphia’s financial institution collapses, the effect will be felt statewide.
“Though I do not represent Philadelphia, my constituents rely on Philadelphia for its culture, its economy, its recreation, and to go to work,” Leach said. “They deserve a safe city and a city that’s working. My district, and all of Pennsylvania, is going to suffer if Philadelphia suffers.”
Senate Democratic Leader Bob Mellow (D- Lackawanna/Luzerne/Monroe), said H.B. 1828, approved by the state House of Representatives last week, must be taken up by the Senate by the end of this week in order to avoid catastrophic damage to Philadelphia.
Mellow said that if the Senate does not act by August 15, Philadelphia Mayor Michael Nutter has warned that he would be forced to lay off thousands of city workers, including thousands of police officers, firefighters and first responders, as well as close fire houses, recreation centers, health centers and libraries.
Sen. Anthony Williams (D-Phila.) said Senate Republican inaction has become a “hostage situation.”
Philadelphia is the only city in the state that is both a municipality and a county. As such, Philadelphia taxpayers must pay for both municipal services, such as police and fire protection, streets and recreation, and state-mandated county functions, such as courts, child welfare and mental health/mental retardation services.
If the Senate passes H.B. 1828 before the August 15 deadline, Philadelphia could raise a total of $700 million in new revenue and savings over the life of the city’s five-year financial plan.
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