Summary
The Philadelphia Must Reduce Its Need for Tax Revenues report analyzes the City’s fiscal trajectory, noting that while Philadelphia has experienced consecutive budget surpluses and tax reductions, overall spending has not decreased. The report finds that the City has relied on increased state and federal aid rather than reducing its own tax-supported expenditures. It warns that without structural spending reductions, the City will struggle to maintain tax cuts in the long term, especially given economic uncertainty and demographic trends. Recommendations include improving government efficiency, securing greater state funding for court operations, and adopting fiscal discipline to ensure sustainable tax policies.