NUTTER: Long Run Budget Picture
a. As PICA has noted, the status quo is not sustainable. However, I have been surprised at the lack of public interest in the City’s fiscal situation and would welcome the involvement of the city’s civic associations in creating a broader understanding of this issue. It doesn’t help to have Mayoral candidates promising new programs and costs that are not realistic or sustainable, with no fact-checking by third parties.
Moreover, if PICA has serious concerns, then I don’t understand why they keep approving the City’s borrowings. The solution will be complex and will involve other levels of government. We need to have a shared decision-making process with clear information and everyone at the table making decisions.
b. The reason to incur debt is the prospect of increased future returns. For City government, that might mean dealing with problems sooner rather than later because of the costs are lower and/or investing in conditions that will generate higher levels of employment and income than would occur without the investment. As Mayor, I will never obligate future Philadelphians to paying off debt that does not seek these fundamental goals.
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1 comment:
He raises an important point that PICA has been a pushover on bond spending. The latest bond issue for the arts is incurring long-run debt for current spending. This is what drove New York to the edge of bankruptcy in the 1970’s. I look forward to the next mayor raising awareness of the long-run budget problems. He did not answer the question on whether he would seek union concessions.
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