Summary
The State of Funding of the Philadelphia Department of Human Services report analyzes the mechanisms through which the Pennsylvania Department of Public Welfare allocates funding to Philadelphia’s DHS, focusing on the challenges posed by the state’s needs-based budgeting process. The report identifies several critical issues, including an outdated inflation adjustment formula that leads to underfunding, inequities in reimbursement regulations, and a lack of transparency in funding calculations. It argues that these deficiencies increase the City’s reliance on local tax revenue to support DHS operations, creating disparities in tax burdens compared to other counties. Additionally, it warns that welfare reform and structural inefficiencies in the funding process could further destabilize Philadelphia’s ability to manage its human services programs effectively.