Editorial: Feeding The Addict's Habit

Although it might seem like a nice, friendly civic gesture, the University would only be propping up a ineffective city government. Philadelphia seems bent on defying a state oversight board that already has been charged with helping the city raise funds. It is time for the University and for the people of Philadelphia to wake up and realize that City Hall has a borrowing habit and needs some serious help. City Council, like any addict, keeps denying that it has a problem. Even though the city faces a $170 million deficit, council is trying to deny the Pennsylvania Intergovernmental Cooperation Authority (PICA) oversight power to review city labor negotiations. Bond traders around the country hold their noses when forced to touch City of Philadelphia bonds. Things can't get much worse. That is, unless the University steps in and gives the addict money. For some misguided reason, the University has joined a group of non-profit institutions in Philadelphia negotiating a $90 million loan to the city. Besides a misplaced feeling of civic duty, one reason that the University might give in defense of the decision might be the high rate of interest on the loan. But that interest will have to come out of the pockets of city taxpayers some day down the line. PICA is already willing to arrange loans for the city to cover all its bills at a considerably lower level of interest if only the city would agree to give up some autonomy in negotiating labor contracts. So a University loan would serve to undermine PICA power to make the city cooperate. It would end up costing Philadelphia taxpayers big money. And it would allow council, the mayor and the city labor unions to continue their habit of squandering Philadelphia's resources. It is time for the city to take the first step and admit that it has a problem. Senior Vice President Marna Whittington could go down to City Council and hold council members' hands if she fears they will go through withdrawal symptoms. But whatever she does, she shouldn't reach into the University's wallet.

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