Summary
PICA’s Fact Sheet on the City of Philadelphia’s Submitted Five-Year Plan for FY25-FY29 provides an updated financial outlook for the City of Philadelphia from FY25 through FY29, reflecting changes made during the budget negotiation process. The plan projects a 4.5% increase in total revenues, reaching $6.56 billion in FY29, while expenditures are expected to grow by 3.7%. Although the General Fund balance remains positive in all years, it is set to decline by $503 million over the period, falling short of the City’s goal of maintaining reserves at 6-8% of revenues in four out of five years. The Budget Stabilization Reserve will receive $176 million in new contributions, bringing total reserves—including the General Fund balance—to $735 million in FY25 before declining to $349 million in FY29. Key financial challenges include persistent budget deficits, with the largest projected at $275 million in FY26 and $257 million in FY27. Wage and benefit costs will remain the largest expenditure category, increasing by 6.3% over the period, while the City has set aside $407 million for future labor contract agreements. The plan also outlines a $10.4 billion capital program over six years, funded through a combination of new borrowing and other sources, supporting infrastructure projects such as street paving, facility expansions, and the relocation of the African American Museum of Philadelphia. These financial commitments and structural deficits highlight the need for continued monitoring to maintain fiscal stability.