Philadelphia Has $32MM Revenue Shortfall

Philadelphia’s city controller says revenues are far short of projections this year, putting more stress on spending and services funded by taxpayers.

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City Controller Alan Butkovitz said on Wednesday that there is a revenue shortfall of $31.6 million in general fund tax revenues through the first six months of FY12.

Butkovitz said lower than expected tax revenue collections were hurt by a shortfall in the city’s wage and earning taxes.

The wage tax brought in $10 million less than expected for the first six months of the fiscal year.

The business privilege tax was down by almost $8 million from projections, while real estate taxes were off by $7 million.

Sales tax collections of $122.9 million through the first six months are the only tax revenue that has exceeded its initial budget projection, posting a gain for the City of $1.6 million.

Butkovitz said Philadelphia’s unemployment rate of 10.1 percent was the fourth consecutive month of decline.