PICA Board Votes to Approve City of Philadelphia's

FY26-30 Five-Year Financial Plan

At its Annual Meeting on Monday July 28, 2025 the PICA Board of Directors voted to approve the City of Philadelphia's FY26-30 Five-Year Financial Plan, affirming that the Plan meets the statutory requirements set forth in the PICA Act. The approval follows a detailed review by PICA Staff, who conclude that the Plan is based on reasonable assumptions and projects positive fund balances in all five years. Key features of the approved Plan include positive fund balances and reserves, reasonable assumptions and projections, and a comprehensive approach to financial planning.

While the Plan meets PICA Act requirements, there are risks, including pension and labor costs and shifting federal policies and funding. PICA Staff raised concerns about planned operating deficits in four of the five years, sharp projected drawdowns in fund balances, and potentially inadequate reserves. PICA Staff recommended that the City improve accuracy in budgeting for new initiatives and increase reserves to reduce the City’s vulnerability to fiscal risks.

PICA's Board elected officers for FY26 at its Annual Board Meeting on July 28, 2025.

• Chairperson - Kevin Vaughan
• Vice Chairperson - Alan Kessler, Esq.
• Secretary/Treasurer - Michael Karp
• Assistant Secretary/Treasurer - Roz Sutch

PICA Board sets Board Meeting Calendar for FY26

The calendar for PICA's FY26 Board Meetings was approved at the July 28, 2025 Annual Board Meeting:

• September 16, 2025
• October 21, 2025
• November 18, 2025
• January 20, 2026
• February 17, 2026
• March 17, 2026
• April 21, 2026
• May 19, 2026
• June 16, 2026
• July 28, 2026 (Annual Meeting)

There are no meetings scheduled for August and December 2025. All meetings will be held at 12:15 pm, Philadelphia, PA time, on the scheduled dates. The normal location of PICA Board Meetings is the Conference Room of the Authority's office located at 1500 Walnut Street, Suite 1600 Philadelphia, PA 19102. Meetings may also be available online, check www.picapa.org for details.

What We're Reading

• Brookings: Southeastern Pennsylvania market assessment for growing opportunity industries and economic mobility
• Regional coordination for development of traded industries is key to creating economic opportunity. This report suggests that coordinated efforts to enhance enterprise digital solutions, material and electronic component machining and fabrication, and biomedical commercialization would have the largest impact in growing Southeastern Pennsylvania's economy and the number of family sustaining jobs it can support.
• American Academy of Actuaries Issue Brief: The 80% Pension Funding Myth
• The funded ratio alone is not a sufficient indicator of pension plan health. In general, pension plan health is better evaluated in relation to the reasonability of its funding and contribution strategy for securing funding for 100% of pension obligations in a reasonable timeframe. Aiming for 80% can result in long term costs above and beyond required pension obligations.
• Moody's Analytics, Policy Map, and Reinvestment Fund Housing Analysis: Where are the Shortfalls and Surpluses?
• Analysis from Moody's Analytics in partnership with Policy Map and the Reinvestment Fund shows widespread shortfalls of rental housing availability across Philadelphia.

$756 Million

www.picapa.org