Summary
The Philadelphia’s Fiscal Challenge: Finding a Way to Save report underscores the need for the City to proactively prepare for economic downturns by creating a reserve fund. It examines financial practices in other cities and states, demonstrating how rainy day funds can prevent drastic service cuts, tax hikes, or debt accumulation during recessions. The report critiques Philadelphia’s lack of long-term financial planning in this area and recommends establishing a savings mechanism to stabilize the City’s finances. It argues that taking action now, while the economy is strong, would help safeguard against future fiscal crises.