Butkovitz: New taxes generate $146 million for Philly schools
City Controller Alan Butkovitz released this week the latest monthly economic report that indicated new tax revenues have provided the School District of Philadelphia with $146 million in the first year.
Since the $2-a-pack Cigarette Tax and one-percent Sales Tax extension went into effect September 2014, yearly revenues through May 2015 have totaled $45 million and $101 million, respectively.
According to the report, the average monthly collection for the Cigarette Tax was $5.6 million. With one month of revenues still to be recorded for the fiscal year, this tax category is expected to meet the estimated $49 million for the first year. "While this is a significant amount of new revenues for the School District, it was determined that the state has charged the School District almost $700,000 so far this year for administrative costs, which is money that does not go to the schools," the Controller's office stated.
Monthly Sales Tax revenues for the School District have averaged $11.2 million. The yearly total through May was $19 million below the FY2015 estimate of $120 million. With revenues still to be recorded for the fiscal year, it is uncertain if the projected amount will be realized.
To read the May 2015 Economic Report visit the City Controller’s Web Philadephia Controller.