In a deal with Street, Council OKs budget; He freed up $9 million to restore funding for three of his programs. Final approval of the $3.8 billion pla
BYLINE: By Marcia Gelbart; Inquirer Staff Writer
Seven months before his term expires, Mayor Street saw some of his favored initiatives get a lifeline yesterday when City Council agreed to minor spending tweaks and then unanimously approved an amended version of his $3.8 billion city budget.
The eighth and final spending plan of Street's mayoral career was by far his least controversial, and it passed in a Council session more mellow than melodramatic.
Despite his staff's early opposition to Council's plan to shift more real estate tax revenue to the school district - giving the district an additional $18 million a year - Street was silent about it yesterday.
Instead, his focus seemed to be on restoring $9 million that Council had cut from three programs. Working with Councilwoman Blondell Reynolds Brown, Street secured $2.5 million to promote Philadelphia to tourists, $2.5 million to keep a city-funded nonprofit named Innovation Philadelphia operating, and $4 million to recruit and retain businesses.
Those dollars were returned after Street proposed reducing by $7 million the amount of debt service that he thinks the city will need next year on bond issues. He also chopped $2 million in fringe benefits.
With those changes, the mayor promised Council in a letter yesterday that he will sign the legislation for next year's budget after Council gives its final blessing Thursday.
In return, Street made no complaint about Council's earlier move to increase its own budget by $3 million, and to boost funding for various city agencies. Council will use its extra money to pay for a summer jobs program, legal fees it anticipates, and home heating assistance.
The state agency that monitors city spending withheld comment yesterday on the deal. Rob Dubow, executive director of the Pennsylvania Intergovernmental Cooperation Authority, said he awaited documents from the administration to support its move to cut fringe benefits and debt-service dollars.
But he did repeat a warning about the city's five-year spending plan, saying more than $100 million still needed to be shifted to keep it in balance.
"There are still a lot of long-term major problems," Dubow said, adding that no money is set aside for salary increases or soaring pension and health-care costs.
Street had been preoccupied the previous few days with the more serious budget problems of the deficit-plagued school district. Several Council members said that only yesterday morning did the mayor call them to seek their support.
"It's a huge relief," said Meryl Levitz, who saw money restored to her organization, the Greater Philadelphia Tourism Marketing Corp. A portion of the $2.5 million will pay for the second year of a two-year initiative that highlights Philadelphia's assets via blogs, podcasts and video.
George Burrell, president of Innovation Philadelphia, hailed the restored funding as critical to the city's economic development. His agency - which relies solely on city money - targets young professionals for jobs and works to recast Philadelphia as a high-tech hub.
Asked for his thoughts about next year, when a new mayor takes office - Street created Innovation Philadelphia - Burrell said: "We have a strong case to make to the next mayor, and if that's Councilman Nutter . . . I think we'll be able to convince him."
Among unrelated legislation approved yesterday was a wartime resolution introduced by Councilwoman Jannie Blackwell. It calls for flags at city-owned buildings to be flown at half-staff "until all U.S. troops come home from Iraq."
Council's three Republicans - Jack Kelly, Frank Rizzo and Brian O'Neill - opposed the resolution, as did Joan Krajewski.
"They vote against anything offensive to the president, so that was to be expected," Blackwell said.
Contact staff writer Marcia Gelbart at 215-854-2338 or mgelbart@phillynews.com.