The Pennsylvania Intergovernmental Cooperation Authority (PICA) was created on June 5, 1991 by virtue of the Pennsylvania Intergovernmental Cooperation Authority Act for Cities of the First Class (P.L. 9, No. 6), 53 P.S. 12720.101 et seq., as amended (the PICA Act) for the purpose of providing financial assistance to the City of Philadelphia (City) in overcoming a severe financial crisis.
The Act provides that the Authority shall have certain financial and oversight functions. The Authority had the power to issue bonds to grant or lend the proceeds thereof to the City. Such power to issue debt for such purposes has expired; however, the Authority remains authorized under the Act to issue refunding bonds and grant or lend the proceeds to the City.
The Authority also shall have the power, in its oversight capacity, to exercise certain advisory and review powers with respect to the City’s financial affairs, including the power to review and approve five-year financial plans prepared at least annually by the City. The City’s original Financial Plan, which covered fiscal years 1992-1996, was prepared by the Mayor, approved by City Council on April 29, 1992 and approved by the Authority on May 18, 1992. The Authority has approved twenty-three subsequent Financial Plans including most recently the Financial Plan for Fiscal Years 2016-2020.