PHILADELPHIA—Pennsylvania legislators reached an important milestone this week when Governor Tom Wolf (D) signed a bipartisan bill extending for 25 years the Pennsylvania Intergovernmental Cooperation Authority (PICA)—a state agency created in 1992 to oversee Philadelphia’s finances in response to a fiscal crisis that left the city unable to borrow money. The bill’s main sponsor was Representative Martina White (R-Philadelphia).
PICA’s oversight has led to nearly three decades of financial stability for the city, as confirmed by research from The Pew Charitable Trusts’ Philadelphia research and policy initiative. Under the original enabling legislation, PICA was due to disband in 2023.
Philadelphia research and policy initiative Director Elinor Haider issued the following statement on the 25-year extension:
“With passage of this legislation, the Commonwealth took a great step forward in ensuring Philadelphia’s fiscal stability for another generation. Over the past 30 years, PICA has helped the city establish and maintain fiscal stability and credibility, served as an enhancement to general obligation debt, and been a key stabilizing force during periods of fiscal turbulence. As the city focuses on achieving an equitable recovery from the pandemic, PICA will continue to play a critical role in ensuring ongoing fiscal stability and long-term planning. We commend the General Assembly and Governor Wolf for achieving this important milestone.”
The Pew Charitable Trusts is driven by the power of knowledge to solve today’s most challenging problems.
To encourage and inform a conversation about the future of PICA and fiscal governance in Philadelphia, Pew conducted research and hosted conversations with policymakers and other key stakeholders—resulting in the following publications: