The two budget balancing plans that the Administration has crafted in the last six months have contained proposals to erase over $2 billion in deficits. The plans include a range of efficiencies, improved collections of taxes owed to the City, and savings through changes in pensions, health care and work rules. All of those actions, however, were not nearly enough to close the huge financial gaps facing the City. As a result, the Administration was forced to propose a mix of painful cuts, temporary freezes in wage and business tax cuts and temporary property and sales tax increases. All of the Administration’s actions were taken in the context of what actions would best position Philadelphia to thrive when the economic recovery begins. Many of the proposals were ones that the Administration would not make under any but the most dire financial circumstances, but were necessary to guarantee the City’s long-term fiscal stability.

Our vision of Philadelphia is a city where people are safe, educated and employed. The critical foundation for getting there is rooted in government decisions that are fiscally responsible. Some elements of fiscal reform will require significant time and cooperation to achieve. Others require the closing of smaller gaps and may occur sooner. Some have already begun. To reach our vision, Philadelphians both employed by, and served by, the City must be prepared to make tough decisions today in order to secure our collective long term future.