Philadelphia's budget has lowest cash balance the city has seen in years


Has not only canceled Philadelphia's fourth of July traditions. It's playing havoc with the city budget. Hey, y W. City Hall Bureau chief Pat Lowe reports. It's closed the fiscal year this week with the lowest fund balance in several years. The fund balance that's the amount of cash the city has on hand for unforeseen expenses is down to about $50 million a slim 1% of its total budget. That is not a great amount to have Budget director Marissa Waxman says the city's goal isto have 68% on hand. And even that is below what experts say its sound, which is 17% or two months worth of expenses. If you think about it compared to your household budget, having just 1% of your annual salary and savings puts you in a much more precarious position than if you had two months saved up the city has an extra burden and that it must get its spending plan approved by the Intergovernmental Cooperation Agency, or Pike, or it loses state funding, But Pica Has approved budgets with low cash balances before and the five year plan does project. The balance is going back to six per cent of the next few years. In addition, Waxman says, the city has built in a new fund, a reopening and recession reserve. It's set aside $80 million over the next two years that can be used in case of recession or reopening expenses. Deplete the budget. Even Mohr Hat lobe Y W. NewsRadio, Kimberly

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