PHILADELPHIA (CBS) — The board that oversees Philadelphia government finances has unanimously approved the city’s five-year fiscal plan, but they had just a few reservations.
The PICA Board’s Executive Director Harvey Rice says the city is showing a better fund balance in the plan than it has in past years and is taking prudent precautions.
“They have a reserve of $200 million for upcoming labor contracts as well as a reserve of $274.6 million for potential cuts from the state and federal government,” he said.
Rice says the board was concerned that labor contracts might exceed the reserve.
It’s also watching pension liability and the volatility of the Business Income and Receipts Tax.
Finance Director Rob Dubow says the city is too:
“Those are legitimate concerns and they’re things we’re going to have to manage through over the course of the next five years,” he said.
The city controller also approved the plan this month.