August 31, 2016—The Board of the Pennsylvania Intergovernmental Cooperation Authority (PICA) today approved the City of Philadelphia’s Five-Year Plan for FY17-21 by a vote of 4-1.

In approving the Five-Year Plan, the Board held that the projected revenue assumptions and estimates in the Plan were reasonable and appropriate and that the Plan projects balanced budgets throughout the next five years as required by the PICA Act.

PICA Staff recommended approval of the Plan, based on the following:

• Revenue and expenditure projections are reasonable and appropriate.
• Preliminary revenue results for FY16 suggest another year of solid performance in revenue.
• PICA staff is encouraged by the City’s efforts to move in the direction of higher fund balances, which is evidenced by its setting aside higher fund balances in this Plan than in recent years. However, PICA continues to advocate for allocating funds to the Budget Stabilization Reserve.
• This Plan includes a $328 million reserve for future labor costs over the life of the Plan.

Read the full press release here.

Read our Staff Report on the Plan here.