September 19, 2017— The Board of the Pennsylvania Intergovernmental Cooperation Authority (“PICA”) today unanimously approved the City of Philadelphia’s Revised Five Year Financial Plan for Fiscal Years 2018-2022 (the “Revised Plan”), submitted to PICA on September 5, 2017. A Fraternal Order of Police arbitration award, resulting in $247.2 million in labor costs to the General Fund over the life of the Plan, prompted the submission of a Revised Plan in accordance with the Pennsylvania Intergovermental Cooperation Authority Act for Cities of the First Class (the “PICA Act”).

In approving the Revised Plan, the PICA Board voiced concerns that the City must be mindful of the impact arbitration awards and collective bargaining agreements may have on the financial stability of the City. Furthermore, the Board is troubled that the Revised Plan does not include reserves for future labor costs, and that it will be necessary to repeat this process relatively soon. In the event new labor contracts are awarded, the City must submit another revised Plan for consideration by the Board.

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For the accompanying press release, click here.