The document provides a collection of links to 2016 news articles covering Philadelphia’s financial challenges, including overtime overspending, pension fund concerns, DROP program costs, and calls for improved city performance metrics. Articles discuss PICA’s oversight role and its warnings about Philadelphia’s long-term financial stability​.

Philadelphia officials warned that new police labor contracts will deplete the city’s $200 million labor reserve, forcing potential service cuts. Finance Director Rob Dubow told PICA that without new savings, the city may have to make difficult budget decisions to maintain fiscal stability.

Press Release announcing that PICA Board Unanimously Approves City of Philadelphia’s FY2025-FY2029 Five Year Financial Plan.

Press Release announcing Marisa Waxman has been appointed Executive Director of PICA, effective October 2023.

A PICA-commissioned study found that Philadelphia could save at least $7 million annually in police overtime by improving scheduling practices and reducing unnecessary court-related appearances. The report suggests investing in new technology and limiting the number of officers subpoenaed for trials to curb excessive costs​.

Philadelphia has negotiated four major labor contracts with wage increases while also attempting to reform its pension system, which remains only 45% funded with a $6 billion shortfall. The city aims to reach 80% funding by 2029 through increased employee contributions and dedicated sales tax revenue, but experts warn that its investment return assumptions may be too optimistic​.

Philadelphia police officers accrued $12 million in overtime during the first seven months of FY18 just waiting to testify in court, contributing to the department exceeding its $57 million overtime budget with five months left in the fiscal year. PICA estimates that the city is on track to overspend its total $135 million overtime budget by $30 million, with police overtime as a major cost drive.

Philadelphia’s five-year financial plan, approved by PICA, projects continued revenue growth to fund labor agreements and rising pension costs but does not account for a potential recession. Board members expressed concern that the city’s revenue assumptions may be too optimistic given economic forecasts predicting a downturn​.

Philadelphia overspent on overtime for the sixth consecutive year, with total overtime costs reaching $170 million in FY16, exceeding the budget by 26%. The Police and Fire Departments accounted for the majority of the spending, and PICA warned that rising overtime costs could negatively impact the city’s long-term fund balances.

Press release announcing PICA report on the FY23Q1 QCMR. FY2023 Fund Balance Projected to Exceed $500 Million, Obligations Projected to Outpace Revenues.

Press Release announcing PICA report on the FY23Q3 QCMR. FY2023 Fund Balance Projected to be $614.9 Million, Obligations Projected to Outpace Revenues.

Philadelphia’s Deferred Retirement Option Plan (DROP) continues to cost the city millions, with 613 employees receiving a combined $101.6 million in lump-sum payments in 2016. Critics argue that DROP, originally designed to be cost-neutral, has instead strained city finances, with total payments exceeding $1.4 billion since its creation in 1999​.