Summary
The Budget Stabilization Reserve Fact Sheet examines Philadelphia’s Rainy Day Fund, which was first funded in FY20 but saw its balance depleted during the COVID-19 pandemic. As of December 2023, the fund holds $107 million, with future deposits determined by a formula based on fund balance percentages. Withdrawals require City Council approval and certification from the Finance Director, with restrictions on usage to address revenue shortfalls or emergency service needs. The report explains the updated formula for required deposits, which was approved by voters in 2023 and ties contributions to the City’s General Fund balance. Additionally, it compares Philadelphia’s reserves to those of other major cities, highlighting best practices in fiscal stability. With the expiration of federal relief funds and ongoing structural deficits, maintaining adequate reserves will be critical to the City’s long-term financial resilience.