The first thing I find interesting In This Article is that Philadelphia has had a recent budget surplus and had planned tax cuts, which are now off the table due to the economy. The state also had a budget surplus recently, while Lower Merion has raised taxes three out of the last four years with massive increases still to come. Heck, Lower Merion was raising taxes when the economy was booming.

It looks to me that Philadelphia is taking pro-active measures before the city has to raise taxes. So much for any pro-active measures and foresight by Lower Merion Township and the LM commissioners to prevent the tax boondogle citizens of Lower Merion are now in, but perhaps Lower Merion can take a lesson from Philly.

I know Lower Merion is trying to come up with a cost cutting solution, but how much does anyone wnat to bet that Mayor Nutter and the giant Philly bureaucracy does a better job? You would think the wealthiest township in the state could do better than Philly and all of its problems - or perhaps that is the problem? Lower Merion wants to have its cake and eat it too.

While those who live behind the iron gates in Lower Merion could probably care less about tax increases, the working class that is left in Lower Merion, let alone the middle class and retirees on fixed incomes, are really hurting over these tax increases.

Nutter warns of budget cuts, possible layoffs

By Patrick Kerkstra and Marcia Gelbart
Inquirer Staff Writer - Fri, Sep. 12, 2008

City departments will be asked to make trims ranging from 1 to 10 percent. Layoffs are possible, Nutter said. The city's fund balance - a robust $298 million a little more than a year ago - might dwindle to almost nothing. And the city's plan to float a massive $3 billion bond to cover its pension obligations has been tabled until market conditions improve.

Further details, administration officials said, will have to wait until the end of October, when Nutter will release a plan to deal with the financial crisis. They would not say which departments were likely to be hardest hit, nor which tax cuts might be rolled back.

But it was clear that the financial crisis is going to cause pain. City departments are already far leaner then they were in the past, given steady budget trimming in recent years. And tax hikes amid an economic downturn won't help the city create jobs.