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For Immediate Release: 
Dec. 30, 2008        

Contact: Harvey M. Rice
(215) 686-6696

VIEW THE COMPLETE REPORT HERE

PHILADELPHIA – City Controller Alan Butkovitz today released an analysis of audits conducted by his office that outlined ways to generate as much as $413,740,000 in revenue by collecting city debts and by implementing a number of cost-saving measures.
 
“Setting aside the $117 million that is owed to the Water Revenue Bureau in delinquent collections, there is an additional $73.9 million in potential one-time revenue sources the City could realize – primarily from the estimated $69 million in uncollected fines and court costs,” Butkovitz said.
 
“There is an additional $68 million that could be realized each year from a number of sources if the City changed its billing and collection practices.  There is a potential $46 million each year alone in uncollected and low fee insurance billings for EMS services.  There is another $20 million that could be realized each year from Licenses and Inspection if L&I billed appropriately for demolition work,” Butkovitz said.
 
According to Butkovitz, “the City of Philadelphia could generate an estimated $413 million dollars over the course of the next five years from both one-time collections and yearly recurring savings. This is over 40 percent of our anticipated five year budget deficit.”

Butkovitz’s analysis was based on ten audits of various City departments that revealed millions of dollars in uncollected debts and recommendations that could result in millions of cost-saving reductions.  His analysis included a one-time collection payment of almost $74 million and a recurring $68 million annually that would amount to almost $340 million over five years.

“That the City is letting millions of dollars slip through the cracks during these extremely difficult financial times is very troubling,” said Butkovitz. 

“The Fire Department alone could generate an additional $10 million each year by increasing its fee for Advanced Life Support by $150, as well as an additional $36 million by increasing its collection of unpaid billings from insurance companies,” he said.
 
Some other savings and revenue potentials included:
*          $168,000 one-time savings if all unused cell phones were disconnected,
*          $300,000 annually from the Dept. of Health if four, full-time pharmacists were                hired, and  contract payments were reduced with the pharmacy staffing                agencies.

“During these difficult and trying financial times, it is incumbent upon the City to do everything possible to reduce costs and generate as much revenue as possible to insure that essential services like police and fire protection as well as trash pick-up continue uninterrupted,” said Butkovitz.  

“It shouldn’t take a financial crisis for city government to start being financially responsible,” he said.

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