Lawmaker Reports Budget Relief Progress

PHILADELPHIA - The signs of strain are really starting to show as Philadelphia gets closer to implementing its doomsday budget.

Those signs include some unbelievable news, according to many police officers, that commanders at headquarters are now considering closing or consolidating police districts if layoffs come, Fox 29's Steve Keeley reported.

But on Thursday morning there was word of a possible breakthrough in Harrisburg negotiations to end Philadelphia's budget crisis.

A state lawmaker – who did not wish to be identified due to the delicate nature of the negotiations – told Fox 29 News an agreement on an amendment has been reached.

The unnamed lawmaker said it looks like labor, specifically the Fraternal Order of Police, has agreed to some changes in pension reform legislation the state Senate tacked onto bills that would grant Philadelphia a penny-on-the-dollar sales tax hike and lower its pension fund payments.

The FOP previously told state representatives not to vote for the Senate's changes, holding up passage of the much-needed relief in the House.

It appears the agreed upon changes are significant enough that the legislation would have to, after passage by the House, go back to the Senate for its consent, then get Gov. Ed Rendell's signature.

But there's no guarantee the Republican-controlled Senate will sign-off on the changes. And the Senate is not in session again until Tuesday.

So all of this means a further delay into next week, and the city's disaster "Plan C" will still have to be carried out as though it's going to happen because the statehouse can't be counted upon, Keeley reported.

Mayor Michael Nutter has stated that his doomsday, "Plan C" budget would lay off 3,000 city employees, including 1,000 of Philly's 7,000 police officers, by Oct. 2.

The city's possible cuts have also lead to signs being posted on the front doors of all libraries saying, "Urgent Action Needed" and "All libraries to close Oct. 2!!! Time is running out! Help today." Maintenance on parks would also come to a halt.

Thursday's apparent progress in Harrisburg negotiations comes a day after FOP President John McNesby told Fox 29 News there would be no compromising on the pension measures.

And City Controller Alan Butkovitz sent Wednesday a four-page letter to PICA (the Pennsylvania Intergovernmental Cooperation Authority, to whom Nutter must submit his revised budget) saying the plan to layoff 3,000 workers isn't "workable."

Butkovitz also said the mayor cannot close the courts by cutting off all funding for them.

Video: Seth Williams Talks Budget Crisis On 'Good Day'

Meanwhile, Rendell is blaming police union leadership for the latest hold-ups on Philadelphia's needed budget relief.

"I mean the unions have been very effective, as they often are in Harrisburg," Rendell said. "And what I'm worried about is that they are going to put so many new changes into that new version that the House will pass that the Senate, which is controlled by Republicans, is going to take a look at that and say, 'This is not what we bargained for. It's not going to bring about serious reform in the pension plans, so we're not voting for it.' And then the mayor will be left with no option but to undertake these massive layoffs and totally freeze funding for the courts. And that would be an absolute flat-out disaster."

The governor also said, "I think that the bill that the Senate crafted was a pretty good bill. And you've seen experts in the Inquirer this Sunday said it was a very good bill for it's helping to resolve the short-term pension problems that we're faced with. For the unions to be so strong and aggressive against this, when it doesn't affect, it virtually doesn't affect any current member of any union, just future members – they may force the mayor to lay off hundreds and hundreds and maybe thousands of city workers, who are all union members. So, I don't get it. It's self-defeating. I don't get it. Right now, nobody should be laid off. Everybody who has a job should be desperate to keep that job, and that should be the union's first concern."

Pennsylvania is the only state in the nation without a budget, and the stalemate is now in its third month.

Aside from dealing with Philadelphia's needed relief, state lawmakers are still trying to hammer out the final details of the overall state budget. The parties are at least $200 to $600 million apart on those talks.