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PA House Approves Philadelphia Sales Tax Expansion

(August 5) HARRISBURG -- Today the PA House of Representatives approved legislation that would temporarily expand the sales tax in Philadelphia and allow the city to defer some of its pension plan payments in order to balance its FY2010 budget and five-year plan. The measure now moves to the PA Senate.

The Senate, however, has expressed an unwillingness to discuss the measure, so what will happen next remains unclear. 

Should the bill not gain full approval from Harrisburg before August 15, the city will be forced to implement its "Plan C" budget, reducing levels of spending across city programs and services.  This budget is expected to include drastic reductions to or elimination of the Philadelphia Cultural Fund, the Office of Arts, Culture, and the Creative Economy, and other city support for cultural organizations and programs.

For more information on Philadelphia's "Plan C," click here.