Wednesday, March 19, 2014

Analyst concerned about Philadelphia budget surplus drop



Morningstar Inc. said a plan by Mayor Michael Nutter to reduce the city’s annual budget surplus by more than 50 percent is a "concern," according to  Bloomberg. Reducing the surplus would drop it to $50 million from $107 million, according to the story.

Here's more:

Nutter said in a statement that he would set aside more than $44 million for potential labor costs, which [analyst Rachel]  Barkley called “a positive note.” Nutter’s $4.5 billion spending plan for the year beginning in July awaits approval by the city council.

The budget also calls for $146 million in capital spending and $131.5 million of new general-obligation bonds, the highest sums for each since 2001, Barkley said. The nation’s fifth-most populous city had $8.6 billion in debt as of December, a bond document shows.

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