Summary
PICA’s Look Before You Leap? The Fiscal Situation that Awaits the Next Mayor report from FY07 provides an overview of Philadelphia’s budgetary constraints and financial risks as the next administration takes office. It warns that by the start of the new mayor’s term, the general fund balance will have declined significantly, while pension contributions and healthcare costs will have increased. The report highlights the City’s growing long-term obligations, limited financial flexibility, and the absence of a rainy day fund. It stresses the urgency of addressing these structural issues through responsible fiscal management and strategic investment in core infrastructure.