Morrell Civic gets
overview of state budget

By Lauren Fritsky
Times Staff Writer

Money was the hot topic at Thursday’s meeting of the Morrell Civic Association.
The group heard from state Sen. Michael Stack (D-5th dist.), who spoke about the state budget, and City Controller Alan Butkovitz, who talked about the city’s finances and real estate tax.
Stack said that Gov. Ed Rendell’s 2007-08 budget is much like last year’s, especially because it won’t get passed before the June 30 deadline.
The budget includes efforts to expand health insurance for children and adults, a 1-percent increase in sales tax and a 3-percent hike in payroll tax for businesses. The state is also attempting to get more secure funding for SEPTA.
Other state budget-related items include the possible sale of the Pennsylvania Turnpike to a private company and a gross-receipts tax on oil carriers.
Stack added that legislators now believe that the state’s new casinos will generate revenue exceeding $1.5 billion instead of the $1 billion they originally estimated.
Butkovitz, a former state lawmaker who has conducted an audit of the School District of Philadelphia and an investigation into the safety of Philadelphia Police Department facilities, said that residents could soon be faced with colossal tax increases.
His concerns lie with the school district’s nearly $200 million deficit and a proposal by the Board of Revision of Taxes to assess real estate at full value.
"We’ve pretty much been lied to for four years," Butkovitz said of the school district’s financial health.
One of the proposed fixes for the district’s deficit involves increasing the percentage of revenue the district receives from the city real estate tax. The tax revenue is split between the school district and the city.
As for the tax reassessment, in last week’s primary election voters overwhelmingly approved — with a margin of more than 40 percent — a ballot question asking if they approved halting the move and conducting hearings to research tax reassessment’s effect on homeowners.
In other news from the May 17 meeting:
• City Councilman Brian O’Neill (R-10th dist.) has arranged for the city to replace equipment that was damaged in a winter fire at Mitchell Playground. It was scheduled to be up early this week.
• The renovation of the Morrell Shopping Center, on Frankford Avenue between Morrell Avenue and Knights Road, should be complete in about 10 months, civic officials said. The center will get a Shop Rite, a larger, improved Eckerd drugstore and a new Blockbuster video store. Levitt Construction and Marathon Contractors are handling the project.
• The civic group is still looking for volunteers for the Morrell Town Watch. The group currently has eight members. Art McQuoid, who heads Mitchell Playground, has offered to let the group use the recreation center as its headquarters. ••
The Morrell Civic Association next meets on Thursday, June 28, at 7:30 p.m. at Christ the King Church, 3252 Chesterfield Road.
Reporter Lauren Fritsky can be reached at 215-354-3038 or lfritsky@phillynews.com