Summary
The FY24 MidYear Budget Amendment Issue Brief examines the role of MidYear Transfer Ordinances in adjusting Philadelphia’s annual budget and the evolving trend of these amendments expanding beyond their traditional purpose. Historically used for minor corrections and emergency expenditures, MidYear amendments have increasingly been used for more significant appropriations, raising concerns about their impact on fiscal stability. The report highlights that since FY20, the average mid-year budget adjustment has grown from 1.5% to 3.4% of the original budget, indicating a shift in how the City approaches mid-year funding changes. To ensure fiscal discipline, the report recommends limiting MidYear Transfer Ordinances to urgent, one-time costs rather than recurring expenditures that should be addressed in the full budget cycle. It warns against using mid-year amendments to introduce ongoing spending obligations without assessing long-term fiscal impacts. By reinforcing best practices, the report aims to prevent the erosion of financial stability while allowing for necessary budget adjustments.