By Wyatt Earp | September 2, 2009
Are you friggin’ kidding me? The city is already well over $2 million in the hole, and now they are going to try and borrow their way to fiscal stability?
Is Mayor Squidward taking a page from Obamonomics?
Does anyone truly think that the Philly Democrats will spend this money in a responsible manner? Show of hands . . .
Philadelphia is taking out a short-term loan to help with cash flow as Pennsylvania’s budget crisis continues.
Mayor Michael Nutter announced Tuesday the city will take out the $275 million loan from JP Morgan Chase. The loan comes with a 3 percent interest rate if paid in full by November 30. On December 1, the interest rate increases to 8 percent.
Mayor Nutter expects the city will re-finance the loan at a lower interest rate in the public markets – once Pennsylvania’s budget crisis is solved.
Mayor Nutter also said Tuesday that by the end of next week, he will submit a new pension plan to the public agency that oversees the city’s pensions. Officials in Harrisburg are forcing the mayor to take that step.
Long story short: The city unions will get fisted in this new deal. Bank on it.
The city’s pension fund, however, is woefully underfunded. To pay all its obligations, the city should have about $8.4 billion in the fund. Right now, it only has about $4.6 billion – 55 percent of what is needed.
The unions place the blame for that squarely on city officials. (H/T – CBS3)
Absolutely correct. Previous administrations (*cough* Rendell and Street *cough*) took money from it like it was a giant ATM, and never worried about the little things . . . like paying it back.
Oh, and can you guess which party has been in uncontested power here for over 60 years? Take your time, it’s on the tip of your nose.
This city is fast becoming the new Detroit. Enjoy the ride.