Members of the state board that oversees Philadelphia’s fiscal health said Thursday that they’re concerned the city doesn’t have a large enough financial cushion.

Philadelphia Mayor Cherelle L. Parker is getting ready to unveil her first budget proposal, and she may have less cash to work with than anticipated.

While Philadelphia still has enormous fiscal challenges and its socioeconomic issues would require billions more to address, the last eight years have put the city budget in a better position.

PICA has been Philly’s fiscal watchdog since it was created as part of a bailout package when the city was on the brink of bankruptcy in the early 1990s.

About 70% of the overtime spending went to the Police Department and the Fire Department. Police overtime this year exceeded $100 million, a 36% increase over the last fiscal year.

The PICA board was set to expire next year, but Mayor Jim Kenney’s administration got behind a bipartisan effort to extend its life.

The current budget leaves only $86.5 million unspent, well below the $900 million that government financial experts recommend.

Mayor Kenney acknowledged the poor outlook for city finances, as he warned that the budget he proposes in March for the next fiscal year is likely “not going to be pretty.”

The city has hired more than 900 employees since Fiscal Year 2017. At the same time, overtime spending has increased.

The report by the Pennsylvania Intergovernmental Cooperation Authority analyzed the $20.7 million the city spent on police overtime from July 2017 through June 2018

While the Kenney administration has negotiated contracts with the city’s four major labor unions during he last two years that gave them all substantial raises.

In the first seven month of fiscal year 2018, police officers racked up $12 million in overtime.