Pennsylvania Intergovernmental Cooperation Authority, Inc.

Newest PICA Publications

• When is a Budget Cut Not a Budget Cut?

  A proposed budget reduction isn’t always a true cut—sometimes it reflects the end of one-time costs, a shift in responsibility to another department, or reduced demand for services. For instance, FY26 budgets for Parks & Recreation and Homeless Services are lower than FY25, but not all changes imply service reductions. To discern real impacts, stakeholders…

  March 31, 2025

  

• Proposed FY26-30 Five-Year Plan Fiscal Highlights

  The City projects declining fund balances and annual operating deficits through FY29, before returning to surplus in FY30, with reserves falling below recommended thresholds in most years. Revenue is expected to grow by 9.6% over the Plan period, while spending will rise just 1.9%, driven largely by wage and benefit costs. The Plan includes $337…

  March 20, 2025

  

• Precision in Projections: Evaluating Philadelphia’s Tax Revenue Forecasts and Volatility

  Philadelphia’s largest tax streams—Wage and Earnings and Real Estate—are forecasted with high accuracy, typically within three percent of actual results. In contrast, smaller and more volatile revenue sources like the Realty Transfer and Amusement Taxes show far greater forecasting errors, reflecting their sensitivity to economic shifts and one-off events. By comparing 21 years of projections…

  February 3, 2025