Last year, the Nutter Administration pledged to seek citizen feedback on the values and decisions reflected during the
budgeting process. That pledge has only been strengthened as a result of the immense financial challenges facing the City. In a
time of tremendous fiscal distress, the Nutter Administration responded by creating the most transparent and detailed public
engagement process the City has ever experienced. The FY10-14 Five-Year Financial Plan reflects the decisions and policy
vision made by the Administration after careful deliberation of public feedback. These processes, and the resulting decisions,
make clear that open, honest government and publicly accountable decisions are core values of the Nutter Administration.
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.