In election aftermath, city gets back to business

The outcome of the presidential election has had little effect on the affairs of Philadelphia -- except to bring the concentration of area politicians back to local affairs.

As the focus turns away from national politics and back to the city of Philadelphia, the government faces a number of significant issues, including financial difficulties, a looming crisis with the city's public transportation and the flight of highly educated students.

Analysts point to the city's budget crisis -- which has forced the layoffs of some government employees -- and the efforts to give the Philadelphia-based Comcast Corporation a tax break for its proposed Center City headquarters, as some of Philadelphia's main issues.

But the problem of retaining talent remains its most pressing long-term challenge.

"When I see my students leave, it's discouraging," Fels Institute of Government professor Sean Reilly said. "We have ... to keep the students."

With its many colleges, Philadelphia has acquired a reputation for educating people who leave the state and work elsewhere. Initiatives such as Greater Philadelphia First -- which attempts to encourage businesses to establish themselves in the city -- try to advertise the benefits and advantages of remaining in Philadelphia, but have so far had only marginal success.

Key among those advantages are opportunities in the health care industry. Philadelphia has a large number of medical educational facilities that produce talented leaders, but frequently fail to retain them.

"We haven't seen ... Philly really turn it into major capitalization," Reilly said. "We need to really look at that as one of the last great ... 21st century opportunities."

Other major plans to attract business and make Philadelphia a leading city include granting tax-free status to select firms. In a related bill, state legislators recently allowed parts of University City to receive tax credits in an attempt to foster technological and business innovation and retain students after graduation.

But financial crises may block the city's plans for the future. Political analyst Larry Ceisler said that the need to fire city employees and a lack of cash are preventing Mayor John Street from pursuing all his plans.

The potential for a changing tax base could pose further problems for the administration.

"One of the big things is there [are] people ... who want to change the tax structure in the city," Ceisler said. "If they do that, there [are] even less funds."

Also clamoring for further funding is the Southeastern Pennsylvania Transit Authority, which faces a $62 million shortfall and has recently threatened to cut service if those needs are not met soon.

And to cap it all, allegations of corruption surrounding the mayor and his supporters remain. The federal probe of the city government has made ethics legislation an important issue, and the case against the accused could still reveal information damaging to Street and his objectives.

Major city issues After the presidential election, the political focus in the region is on problems facing Philadelphia. Fiscal difficulties: With a shrinking tax base and declining tax revenue, Mayor John Street has announced some layoffs of city employees. Public transit: SEPTA officials have threatened major cutbacks in service if the company does not receive funding for its $62 million budget deficit. Brain drain: Highly educated students who graduate from Philadelphia schools continue to flee the city after graduation. Corporate tax breaks: City and state officials are offering tax breaks to majoremployers to entice them to remain in Philadelphia. Corruption probe: The FBI and U.S. Attorney's office continue to investigate and prosecute associates of Street.

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