City’s first-ever deposit into Rainy Day Fund enhances strategy for fiscal health
PHILADELPHIA — The Board of the Pennsylvania Intergovernmental Cooperation Authority (PICA) today unanimously approved the City of Philadelphia’s FY2020-2024 Five-Year Financial Plan. Mayor Kenney’s fourth Five-Year Financial and Strategic Plan helps secure the City’s financial future while also investing in key policy initiatives.
In addition to including more than $180 million in contributions to the Budget Stabilization Reserve—the City’s first ever contributions to its rainy day fund—the Plan will enable the Administration to continue with its strategy to strengthen the health of the pension fund and maintain stronger fund balances than included in prior years’ plans. Fund balances in the Plan are at least $125 million each year, which is more than $80 million higher than the lowest fund balance in last year’s plan.
“Our Administration continues to work aggressively to ensure we can meet the needs of Philadelphians today and into the future,” said Mayor Kenney. “We are being good fiscal stewards and making choices and investments that will benefit our community for decades to come.”
While investing in the City’s financial future, the Plan also includes expanded support to the School District of Philadelphia, with a $30 million increase in FY2020 as compared to FY2019. Over the life of the Five-Year Plan, the City’s General Fund contribution will be more than $1.2 billion. The Plan will also put resources into Philadelphia’s neighborhoods through the implementation of transformational programs like Rebuild and will help to improve the delivery of citywide services through investments in more timely trash collection and better conditions of the city’s roads.
The FY20-24 Five Year Plan continues investments to combat the opioid epidemic by providing additional funding to the Philadelphia Resilience Project, the citywide emergency response focused on Kensington and surrounding neighborhoods at the epicenter of the crisis. Funding has been increased for health and human services to protect Philadelphia’s most vulnerable populations and to mitigate the effects of poverty. To prevent and reduce violence, the City released The Philadelphia Roadmap to Safer Communities, a comprehensive strategy that focuses on prevention, intervention, and reentry to reduce violent and gun-related crime. The FY20-24 Plan includes $31.5 million in additional funding to support the implementation of this strategy.
“We are prioritizing our schools, the safety of our neighborhoods, and making sure Philadelphia’s economic growth is inclusive and equitable,” Mayor Kenney added. “Our spending priorities will allow the City to remain fiscally responsible, build on the momentum we’ve achieved, and address the challenges ahead.”
Today’s approval by the PICA Board indicates that the Plan is based on reasonable assumptions. PICA oversight fosters sound financial planning and budgetary practices.