Summary
The Pennsylvania Intergovernmental Cooperation Authority (PICA) flagged Philadelphia’s continued overtime overspending, reporting that overtime costs have risen steadily since 2010, growing from $120 million to $170 million in FY16. The city budgeted $135 million for overtime but exceeded it by $35 million, with the Police Department ($64 million) and Fire Department ($37.4 million) responsible for the largest overruns. Other departments, including the Sheriff’s Office and Streets Department, also overspent significantly, citing staffing shortages and emergency responses as key drivers. The city administration acknowledged the issue but argued that increased tax revenues and interdepartmental transfers helped absorb the overspending without impacting the final FY16 fund balance, which ended at $148.3 million—$79 million higher than projected. PICA warned that without better overtime controls, the city’s financial stability could be at risk, and the Kenney administration pledged to prioritize cost reductions. For FY17, the city projected a $37 million reduction in overtime spending, but past trends raised concerns about whether those savings would materialize.