Philadelphia’s pension and health care costs for city employees are increasing at a much faster rate than the city’s revenue, according to a report released yesterday by the Pew Charitable Trusts and the Economy League of Greater Philadelphia.

By 2012, the city is expected to pay more than $1 billion, or about 28% of its budget, to cover pension obligations and health care benefits. This is an increase from 16% in 1998, according to the report titled “Philadelphia’s Quiet Crisis: The Rising Cost of Employee Benefits.”

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