Mayor unveils 1999 budget

For the first time since Ed Rendell began serving as Philadelphia mayor in 1992, the city is beginning to shed remnants of the fiscal crisis which plagued it when he took office, Rendell said yesterday. Speaking to a packed City Council room in City Hall yesterday, Rendell outlined his proposed budget for the next fiscal year, stressing that last year was one of fiscal stability. Fiscal year 1997, which ended last June 30, was the fifth consecutive year which ended with a budget surplus, this time a record $128.8 million. Rendell said this year's budget will cut taxes, improve services such as graffiti removal and trash collection and spur job growth and economic development. He also outlined new proposals on crime, education, homelessness, welfare, recreation departments and neighborhood projects. City Council members will begin deliberating on the proposed budget February 10 and vote on it at a later time. Councilwoman Jannie Blackwell, who represents West Philadelphia, lauded the mayor for focusing on neighborhood issues. "I was heartened by the mayor's straightforward response to welfare and homelessness," Blackwell said. "I'm glad to see he has such a commitment to these areas." Crime was a major focus of Rendell's budget. While crime in other cities has dropped in recent years, Philadelphia's crime rate has risen. The mayor's proposal allots $358.3 million for the Philadelphia Police Department, accounting for about 7,000 police officers -- Philadelphia's largest sworn force in a decade -- computers in police cars and new helicopters. "At the local level, we are not just talking about fighting crime; we are doing something about it," Rendell said. The mayor asked the city to reduce the residential tax from 4.79 percent to 4.6869 percent, a 2.2 percent cut. He noted that although such a cut was larger than originally planned for fiscal 2000, "we can afford it now, and our citizens and businesses deserve it." He said that tax cuts from fiscal years 1996-99 will cumulatively save taxpayers about $204 million. "Three rounds of cuts in the city's debilitating wage and business-privilege taxes have sent a powerful message, and that message is simple: the cost of living and doing business in Philadelphia is coming down," Rendell said to overwhelming applause. The budget also includes funding devoted to projects such as renovations at the Philadelphia Museum of Art and Independence Mall, as well as construction of the regional performing arts center on South Broad Street. The mayor also proposed, amid much applause, that the city dedicate a supplemental $15 million to the school district. The Philadelphia public school budget is separate from the main city budget. Rendell also proposed $750,000 for the Recreation Department, including the Violence Prevention After School Program. Such funds, according to Rendell, will enable the department to serve 3,200 children at 160 sites across the city. Some of this money goes toward the school district, which is creating 40 new after-school programs by the end of this school year. Rendell's budget also addresses the issue of homelessness. Last year, the city added 1,200 housing units for homeless individuals and families at risk. The proposed budget "maintains this commitment to preventing homelessness," granting $150,000 to the Office of Emergency Shelter Services. Rendell said the city is harmed by federal and state cuts in both welfare and medical aid. To compensate, the proposed budget includes a $1 million increase in 1999 for the eight district health centers to cover more staff and medical supplies.

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