Summary
Philadelphia’s 1991 fiscal crisis centered on a deep General Fund structural deficit, severe cash flow problems, and loss of access to credit markets. To restore fiscal stability and avoid default, the Select Committee recommended creating a state authority with borrowing capacity, dedicated revenues, and oversight tied to a five-year financial plan. The recommendations helped establish the framework for PICA’s role in supporting Philadelphia’s long-term financial recovery, budget balance, and intergovernmental cooperation.