Summary
The Measuring the Accuracy of Spending Projections issue brief analyzes how well Philadelphia forecasts its expenditures, finding that it is the second-most accurate city among 15 peers. Over the past 20 years, the City’s actual spending has been within ±2.0% of its budgeted projections, significantly better than the peer city average of ±5.0%. The report credits strong financial controls, legislative oversight, and adjustments in discretionary spending as key factors contributing to this accuracy. While the City’s expenditure forecasting is strong, the report notes that overspending has occurred more frequently than underspending, highlighting the need for continued oversight. The findings support PICA’s recommendations for maintaining strong financial planning and reinforcing budgetary discipline.