Mayor Michael Nutter says, without that tax, hundreds of city jobs will be lost.
Nutter had originally requested a two penny per ounce tax on all sugary drinks. However, in the face of opposition, the mayor lobbied in the last 24 hours for a half-cent per ounce tax, but could only get seven of the nine votes needed.
"Right now, for all intents and purposes, it is not on the table, and I do not see it coming up in the future," said Councilwoman Marion Tasco.
Mayor Nutter sent a letter to the council on Thursday morning, warning of 339 layoffs if the "soda tax" did not go through. But, key council members say a tax on chewing tobacco and cigars, plus a 9.9% property tax hike, should provide a $42 million budget surplus.
However, the mayor says that still leaves a $20 million shortfall. To make up the difference, Nutter said he will cut two new police classes and eliminate four fire companies.
Furthermore, the mayor said library branches would only be open four days per week.
"These cuts will have an impact and they are across, easily, a dozen different departments," Mayor Nutter said.
Some council members said they believe the mayor is bluffing about the layoffs.
"He may go forward and lay these folks off, I'm sad to say, but he doesn't have to lay these people off based on the numbers in this budget," said Councilman James Kenney.
The president of the city's largest municipal workers union says they are already working without a contract, and his people will not accept any cuts.
"We will not stand for any of our employees to be laid off, and we want to negotiate a fair contract. We think we've been more than fair with this administration," said Pete Matthews of District Council 13.
Nutter said the soft drink industry's lobbyists intimidated the council to back off the soda tax in recent weeks.
