Publications

The Intergovernmental Cooperation Agreement (ICA) outlines how PICA and the City will meet the fiscal oversight requirements of the PICA Act, detailing responsibilities for financial planning, reporting, and enforcement. Updated in 2023, the agreement ensures transparency and accountability by regulating fund management and permitting financial penalties if the City falls out of compliance. As a…

A proposed budget reduction isn’t always a true cut—sometimes it reflects the end of one-time costs, a shift in responsibility to another department, or reduced demand for services. For instance, FY26 budgets for Parks & Recreation and Homeless Services are lower than FY25, but not all changes imply service reductions. To discern real impacts, stakeholders…

Philadelphia’s FY24 Annual Comprehensive Financial Report (ACFR) received an unmodified audit opinion, confirming its accuracy and reliability. While the report shows a modest decline in the General Fund balance and locally generated revenues, PICA Tax revenues grew, and debt service remained a stable portion of total spending. The ACFR is a valuable tool for understanding…

The City projects declining fund balances and annual operating deficits through FY29, before returning to surplus in FY30, with reserves falling below recommended thresholds in most years. Revenue is expected to grow by 9.6% over the Plan period, while spending will rise just 1.9%, driven largely by wage and benefit costs. The Plan includes $337…

Persistent staffing shortages have caused Philadelphia to underspend by over $200 million on employee wages across FY23 and FY24, as actual vacancies far exceeded budget assumptions. The report weighs whether vacancy rates in future budgets should be revised upward to improve transparency and flexibility. Regardless of the approach taken, clearer and more consistent disclosure of…

The Board heard a detailed presentation on the proposed FY26 Commonwealth budget, including investments in education, healthcare, and cannabis regulation, followed by a discussion on the future of Philadelphia’s row offices. Updates from the City covered Q2 fiscal projections and new federal funding reserves. The Board approved three resolutions: revenue analysis services, PICA’s FY26 operating…

PICA’s Board reaffirmed its long-standing recommendation to eliminate Philadelphia’s independently elected row offices of the Sheriff and Register of Wills, citing persistent operational, financial, and accountability failures. The resolution references prior audit findings and media reports documenting systemic issues, including poor fiscal controls, service delays, and alleged politically motivated employment practices. The Board urges City…

The Board will review minutes from the prior meeting, receive updates and staff reports, and invite public comment. Members will consider and vote on Resolution No. 2025-11, a recommendation regarding Row Offices. The meeting will conclude with time allotted for new business.

The second-quarter FY25 QCMR projects General Fund revenues at $6.27 billion, $11.7 million higher than the Q1 projection but still below the Five-Year Plan, while obligations have increased to $6.66 billion, $294.8 million higher than expected. The year-end fund balance is now projected at $584.3 million, $15.9 million higher than the Five-Year Plan but $58.2 million lower than the Q1 projection, representing 9.3% of revenues​.

Overtime spending reached $153.2 million through Q2, a 14 percent increase over the same period in FY24, driven by persistent public safety vacancies, election-related operations, and the addition of a new City holiday. The City now projects total FY25 overtime spending will reach $300 million, exceeding the adopted budget by nearly $15 million. Despite some…

PICA renewed Ballard Spahr LLP’s engagement as General Counsel for one additional year, retroactive to February 20, 2025. The renewal follows the terms of the original agreement, which allows for three one-year renewal options at PICA’s discretion.

PICA approved its FY2026 Operating Budget, ensuring continued funding for the Authority’s financial oversight responsibilities. The approved budget will be submitted to the Governor and General Assembly of Pennsylvania.

PICA retained Charles Swanson to review and analyze revenue assumptions in the City’s FY2026-FY2030 Five-Year Financial Plan, for a fee not exceeding $9,000. This engagement ensures that PICA can assess the accuracy and reasonableness of the City’s financial projections.

At this meeting, the Board approved the reappointment of Executive Director Marisa Waxman and received updates from the City, including labor contract developments and early FY26 budget planning. Staff highlighted delayed responses from the City regarding wellness center spending and previewed upcoming reports on tax revenue forecasting and overtime. The Treasurer’s Report and a discussion…

The agenda for the January 21, 2025, board meeting includes updates from the City of Philadelphia, reports from the Executive Director and Treasurer, and a vote on Resolution No. 2025-07, which concerns the reappointment of the Executive Director. The meeting will also include time for public comment and new business discussions before adjournment.

Philadelphia’s largest tax streams—Wage and Earnings and Real Estate—are forecasted with high accuracy, typically within three percent of actual results. In contrast, smaller and more volatile revenue sources like the Realty Transfer and Amusement Taxes show far greater forecasting errors, reflecting their sensitivity to economic shifts and one-off events. By comparing 21 years of projections…