When City Council begins its Budget Hearings on February 5th, it will be checking its own notes as well as those recorded in the Philadelphia Reserve Bank study just released on the economic health of the city and the region. 

The FRB report shares City Council's concern that population growth has been slow. Councilman James Kenney has been championing for a campaign to attract more immigrants, a lack of which, says the report, has contributed to slow growth for the city. It says the foreign born population in this city is lower than in other cities where economic growth was more rapid; fueled by the needs and resources created by new immigrants.

The Mayor's recent collaborative efforts with organized union leadership to modernize labor rules at the Convention Center reducing costs to conventions is a reaction to what the Federal Reserve Bank report noted as it reported job opportunities in the area have traditionally been hampered by higher costs for labor and energy. The report was quick to note that higher worker productivity can compensate for higher labor costs.

Here it shares the announced concern of the Administration and the City Council by adding "Over the long run, increasing the region's productivity depends on increasing the general education level of the workforce and retaining highly educated, highly skilled workers by offering a high quality environment," The Mayor and the City Council have said and asked the new School Board to work toward that very goal, educating the city's youth for today's market needs. 

Though the schools have the full support of the administration and the council, it will have to depend heavily on state aid to meet the heavy shortage of cash facing it in the new budget year. Partly to blame are quick fixes without the establishment of new resources to continue feeding those short falls and the he recent teacher contract agreement settlement. The School Board will be seeking well over $150 million according to top sources bringing Harrisburg into play.

The city government is doing well in its efforts toward making Philadelphia a destination city for those seeking new jobs and better life styles, as it promotes cultural and tourist attractions, a key essential in attracting new businesses according to the FRB Report.

Attempts by this town's political leadership to attract foreign capital to the region have been successful says the report. It took note of the fact that there has been an increase of more than six-fold in the second half of the 1990s in venture capital. The Port, however remains sluggish.

The FRB also noted that while demographic and market forces drive the regional economy, public policy is also a significant factor. The high tax burden in the City of Philadelphia deters job creation. This awareness is evident in the Mayor and City Council's continued whittling away at the City Wage Tax. 

The city is unable, according to the report, to enjoy the benefits of comprehensive regional planning and infrastructure investment. That's because there are more than 350 municipalities in nine counties in the tri-state region. The FRB holds out some hope here reporting the region's governments and its business and civic communities have demonstrated that they can cooperate on key projects. That type of cooperation needs to be expanded, it notes, if the region is to compete successfully in the new century.