Nutter's budget address leaves fate of school funding and PGW sale up in the air

Mayor Michael Nutter held his annual budget address this morning amidst tightened security, stemming from fears of a repeat of the union protests that interrupted last year's speech. But Council chambers were silent as Nutter spoke. Police had allowed only a small stream of union workers into the hall, with the condition they stay silent and carry no placards.

The mayor's speech largely focused on concrete issues: the growth of the city, the decline of crime, strong private investment in construction and his planned spending for the coming year. But the two most pressing issues of the day — education funding and the future of the Philadelphia Gas Works — were largely left to speculation.

Nutter said that an infusion of money for the beleaguered Philadelphia School District was still wholly based on a plan to split up the proceeds from an existing one percent sales tax increase and a proposed tax on cigarettes between the city's ailing penion fund and the district.

That's all dependent on action from Harrisburg that would 1) create the new cigarette tax, and 2) authorize the division of revenue. The passage of that bill in the state's general assembly is far from certain.

The mayor also used his vision of a privatized PGW as an additional patch for the city's debilitated municipal pension fund.

In a response to the mayor's address held by City Council members immediately after his speech, however, Council President Darrell Clarke pledged unwavering support for the city's various labor unions, and spoke out against the $1.8 billion sale of the public utility. PGW employees were present outside City Hall, wearing black jackets that read "Don't Sell PGW," suggesting union opposition to the sale is still heating up.

Although the mayor made promises to upgrade municipal vehicles and boost funding for homeless support and the Department of Licenses and Inspections, his big picture plans are still in political limbo.