Economists predict a recession by 2021, and Philadelphia is preparing

PHILADELPHIA (KYW Newsradio) — The National Association of Business Economists has found that three out of four economists are predicting a recession by 2021, and Philadelphia budget officials say they're paying attention. Their annual financial report, released Monday, shows they've made the first-ever deposit into a rainy day fund.

The Great Recession of 2008 caught the city off-guard.

"It pretty quickly turned and required some really drastic action," said Finance Director Rob Dubow. He recalls painful service cuts. In an effort not to repeat history, his office is already testing different scenarios. 

Budget Director Marissa Waxman says not only would tax revenue decline but the demand for city services could increase.

"We see different areas where, you know, the Office of Homeless Services might have more needs in a bad economy or the Department of Human Services, the Department of Public Health," she said.

Waxman says deficits could hit $100 million by 2022. 

On the upside, the city's liquid assets are healthier and, for the first time, it's put $34 million into a reserve fund to help it weather a recession. But the officials say there's more work to be done to prepare.