PHILADELPHIA (CBS) – Mayor Michael Nutter’s long-range budget was approved today by the state agency that watches over the city’s spending.  But that approval came with some misgivings.

The five members of PICA (Pennsylvania Intergovernmental Cooperation Authority) voted unanimously to approve what’s called the “Five Year Plan” — the mayor’s long-range budget that shows how the city will stay afloat until 2016.

But all five members voiced concerns about enormous risks, including an underfunded pension plan for city workers and the possibility of state and federal budget cuts to city programs.

The chairman of the PICA board, former mayoral candidate Sam Katz (below right), said because the plan was technically balanced, he was obligated to vote yes.

(Sam Katz. File photo)

“That’s the way the system is set up,” he told KYW Newsradio.  “It’s not set up to set up to say, ‘Only consider the things that you’re certain about.’   Because if that was the case, you’d never be able to pass a five-year plan.”

Katz, though, wants PICA over the next year to push for new ideas in solving the city’s budget woes, including selling off certain city assets.

Reported by KYW City Hall bureau chief Mike Dunn