Summary
Philadelphia’s proposed FY27–31 Five-Year Plan maintains positive fund balances in each year, but projects operating deficits in four of five years and a steady decline in reserves over time. Revenues are expected to grow by 10.3 percent over the Plan period, driven primarily by local taxes, while spending growth is more modest but still exceeds revenues in the near term. Although the Plan includes new reserves and continued investment, projected fund balances remain well below recommended levels, underscoring the importance of maintaining sufficient fiscal cushion against economic uncertainty.