Summary
The Reversing the Trend of Doing Too Little with Too Much report evaluates Philadelphia’s declining investment in infrastructure while long-term obligations, including debt service and pension liabilities, have rapidly increased. From FY01 to FY06, the City’s annual long-term obligation payments grew by $140 million, consuming a larger share of the budget and limiting financial flexibility. Meanwhile, capital investments fell sharply, dropping from $117 million in FY01 to $68 million in FY06—far below the $185 million annual level recommended by the City Planning Commission. The report recommends shifting more capital spending to pay-as-you-go financing, retiring existing bonds to lower debt service costs, and consolidating or selling underutilized facilities to reduce maintenance expenses. Additionally, it advocates for clearer debt management policies to ensure fiscal sustainability while maintaining essential public assets.