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Council President Verna and members of City Council:
Thank you for the opportunity to speak to you and the people of Philadelphia this morning about the tremendous opportunities and critical challenges facing our City.
Mayors normally address Council in this way only when the City budget is proposed in January.
So, I want to thank you for this opportunity today.
For much of the last decade, we benefited from the longest period of economic expansion in our nation's history.
But today, America finds itself in the grips of a recession, intensified by the new threat called terrorism.
This recession has thrown federal, state and local budgets across our country out of balance.
Just last week, Mayor Bloomberg of New York unveiled a drastic plan of service cuts and increased tax rates to close a projected $7.4 billion deficit.
Mayor Williams of Washington, D.C. is raising taxes by $122 million and reducing spending by $203 million.
Virtually every major city is facing significant budget gaps resulting from plummeting revenues driven by the national economy.
Cities are cutting services, eliminating jobs, postponing pay raises, delaying tax reductions, and even RAISING tax rates to cope with spiraling budget deficits.
And Philadelphia is not immune from the ravages of the economy!
Just as Pennsylvania is being forced to balance its budget with reserves accumulated in the 90s, Philadelphia finds its reserves being depleted in response to economic events beyond our control.
Despite our fundamental strengths as a city; despite the fiscal discipline we have exercised, we are faced with deficits that are a direct result of the downturn in the national economy.
I am here today to share with you the facts of our fiscal condition, and to suggest the steps we must take to squarely meet this challenge.
I am proud to report that even in the face of our challenges, the condition of our City remains strong.
Ho...
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