Philly again warns of 'painful budget choices' as COVID-19 s

Philly again warns of 'painful budget choices' as COVID-19 sinks fiscal outlook


The projected $450 million deficit is based on the Philadelphia maintaining its current level of services — which would cost about $5.1 billion. The city projects its revenue and available reserves will total just $4.7 billion, due to a dip in tax collections and the depletion of the city's reserve fund during the pandemic.
When Philadelphia's fiscal year ends on June 30, the city expects to have just $29 million in its fund balance. That's down from about $438 million at the end of Fiscal Year 2019. The city hopes to restore its rainy day fund to about $50 million by the end of the next fiscal year.
The Government Finance Officers Association recommends that municipalities maintain a reserve equal to two months of spending, which would be about $800 million for Philadelphia. The city currently has about three days worth of spending in its general fund.

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