Summary
The Board of the Pennsylvania Intergovernmental Cooperation Authority (PICA) is pleased to announce the approval of the City of Philadelphia’s Five-Year Financial Plan for Fiscal Years 2025-2029. This comprehensive fiscal roadmap reflects the City’s commitment to fiscal responsibility and improved public services. The approved Plan outlines a strategic approach to addressing key financial challenges, like achieving full funding of the Pension Fund and navigating the end of federal COVID relief funds. With a focus on long-term stability and resilience, the Plan sets forth a series of initiatives designed to help Philadelphia residents and businesses thrive.
Following a thorough analysis of the Plan documented in the PICA Staff Report on the FY2025-2029 Plan, PICA’s staff recommended approval for several key reasons: • Positive Fund Balances – The Plan projects positive fund balances in each of the five years covered by the Plan, as required by the PICA Act. • Reasonable Assumptions and Projections – Revenue and expenditure projections are based on reasonable and appropriate assumptions and methods of estimation. – PICA’s external economic consultant, Professor Charles Swanson, and City Controller Christy Brady have verified that the tax revenue projections are reasonable over the life of the Plan. – PICA staff analysis found that projections for non-tax revenues and spending by major class are reasonable over the duration of the Plan. • Comprehensive Financial Planning – The Plan meets all requirements set forth in the PICA Act, including provision of schedules for long-term debt, a cash flow forecast for the first year, and a schedule of authorized positions.
While PICA is confident that the reasonable assumption and positive year-end fund balances are reasonable, there are potential risks to the City’s fiscal stability. These include low fund balances, economic conditions, labor costs and staffing challenges, and unexpected events.