Philadelphia Mayor Jim Kenney Warns Of Possible $450 Million Budget Gap

CBS Philadelphia

February 16, 2021

PHILADELPHIA (CBS/AP) – The city of Philadelphia is warning of a potential $450 million budget gap for the 2022 fiscal year and is asking residents to weigh in on spending priorities. Mayor Jim Kenney on Tuesday cited the pandemic and ensuing economic downturn for what he called a “staggering” drop in tax revenues as well as new costs and higher costs for existing services. In a statement, he said “the picture for the coming budget is bleak.”

“This pandemic and the economic downturn it caused led to new costs, higher costs for the services we’ve always provided, and a staggering drop in our tax revenues” Kenney said in a statement. “Unfortunately, as we work with the City’s economists to look ahead, the picture for the coming budget is bleak.”

Finance Director Rob Dubow said officials are optimistic about help from the federal government but the “timing, scale, and details of how funds will arrive and can be spent remains undetermined.” And even with a one-time infusion of federal money, he said, the city could face “years of budget stress as the economy recovers.”

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