The Intergovernmental Cooperation Agreement (ICA) outlines how PICA and the City will meet the fiscal oversight requirements of the PICA Act, detailing responsibilities for financial planning, reporting, and enforcement. Updated in 2023, the agreement ensures transparency and accountability by regulating fund management and permitting financial penalties if the City falls out of compliance. As a…

The Pennsylvania Intergovernmental Cooperation Authority (PICA) was established in 1991 in response to Philadelphia’s financial crisis, providing oversight and access to capital markets to restore fiscal stability. The Authority continues to review the City’s annual Five-Year Financial Plans and enforce compliance through quarterly reporting and the power to withhold state funds if necessary. Amendments in…

The Board heard a detailed presentation on the proposed FY26 Commonwealth budget, including investments in education, healthcare, and cannabis regulation, followed by a discussion on the future of Philadelphia’s row offices. Updates from the City covered Q2 fiscal projections and new federal funding reserves. The Board approved three resolutions: revenue analysis services, PICA’s FY26 operating…

At this meeting, the Board approved the reappointment of Executive Director Marisa Waxman and received updates from the City, including labor contract developments and early FY26 budget planning. Staff highlighted delayed responses from the City regarding wellness center spending and previewed upcoming reports on tax revenue forecasting and overtime. The Treasurer’s Report and a discussion…

In addition to regular reports and City updates, the Board will hear a presentation on grants administration benchmarking and recommendations. Members will review the minutes from the March meeting and open the floor for public comment. The agenda will also include time for new business before adjourning.

The Board will review minutes from the prior meeting, receive updates and staff reports, and invite public comment. Members will consider and vote on Resolution No. 2025-11, a recommendation regarding Row Offices. The meeting will conclude with time allotted for new business.

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…

Persistent staffing shortages have caused Philadelphia to underspend by over $200 million on employee wages across FY23 and FY24, as actual vacancies far exceeded budget assumptions. The report weighs whether vacancy rates in future budgets should be revised upward to improve transparency and flexibility. Regardless of the approach taken, clearer and more consistent disclosure of…

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…

Philadelphia’s FY24 Annual Comprehensive Financial Report (ACFR) received an unmodified audit opinion, confirming its accuracy and reliability. While the report shows a modest decline in the General Fund balance and locally generated revenues, PICA Tax revenues grew, and debt service remained a stable portion of total spending. The ACFR is a valuable tool for understanding…

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…

This reserve category sets aside funds to address potential but undefined fiscal risks, such as labor contract costs or federal funding reductions. From FY14 to FY24, Class 900 appropriations averaged $56.6 million annually, with funds transferred to departments when needed. While the balance of these reserves varies based on fiscal conditions, they provide critical flexibility…