For Immediate Release:
May 24, 2010
Contact: Brian Dries
Butkovitz Raises Concern Over Projected $50 Million Deficit
Deficit projection included in the Controller’s Monthly Economic Report
along with rise in real estate sales
PHILADELPHIA – City Controller Alan Butkovitz today released his monthly economic report that highlights the city’s projected deficit of over $50 million for FY2010. Last month, the Administration had previously reported that the projected deficit would be $37.9 million.
The projected $50.9 million deficit is a result of adjustments to revenues and expenditures as reported in the Quarterly City Manager’s Report for the third quarter.
Additionally the Controller’s economic report highlights that while sales tax collections have gone up from one year ago because of the one percent increase, the $18.3 million in sales collections for April is lower than expected and continue to lag projections.
Total FY10 collections of the City’s portion of the Wage, Earnings and Net Profits taxes are down -1.07 percent from one year ago putting the current figure at $1.2 billion.
Along with a look at General Fund collections, the Controller’s economic report contains the top 10 real estate sales by ZIP code for the City. The Juniata Park section (19124) of the City topped the list with 60 sales in April. Since January, real estate sales for this section of the City have almost doubled.
Portions of South Philadelphia (19148, 19146, 19147) were in the top five for most real estate sales. The remainder of the top real estate sales stretched from Fishtown (19125) through Port Richmond (19134) and up to the Lower Northeast (19111 and 19149).
The Economic Snapshot and Monthly Forecast are compiled by the Controller’s Financial and Policy Analysis staff. The Monthly Economic Snapshot presents key economic data for the United States, the Greater Philadelphia Region, and the City of Philadelphia. The Monthly Economic Forecast Review is a collection of projections from prominent economic institutions and an analysis of their forecasts of future economic performance.