Summary
The Philadelphia Government Costs: Additional Reductions Required report reviews Philadelphia’s financial management, highlighting that despite consecutive budget surpluses, the City has not substantially reduced its operating costs. The report finds that local funding for core municipal services, social services, and fixed costs remains high relative to historical levels, creating long-term fiscal pressures. It warns that economic decline, population loss, and reductions in state and federal funding could further strain the budget unless spending is systematically reduced. The report recommends reassessing service levels, implementing efficiencies, and aligning expenditures with the City’s shrinking tax base to ensure sustainable financial health.