State Agency Approves Phila. Long-Term Budget

The state agency that keeps watch on Philadelphia's shaky finances today gave a thumbs up to the mayor's long-range budget despite a number of big question marks.

KYW's Mike Dunn reports that the board of PICA (the Pennsylvania Intergovernmental Cooperation Authority) approved Nutter's five-year budget without any public discussion, but board members did endorse the staff's review of that long-range plan.

Included in PICA's review are reservations about looming issues that could derail the budget.  Wadud Ahmad is one of the board members:

"We're pulling our way out of one of the worst financial situation the city has ever faced.  We're in the middle of labor negotiations (with the municipal workers' unions).  So there are a lot of ifs."

Rob Dubow, the mayor's finance chief, was gratified with the board's okay and did not dispute any of the members' reservations:

"We have to be mindful of all those risks and how we have to manage for them."

Of particular concern to Dubow and PICA is the ongoing debate in Washington, DC over medical assistance funding, which could impact both the state and the city.  Dubow notes that Harrisburg is likely to get two thirds of what had first been expected:

"It looks like that will be passed at the federal level, but at a level lower than anticipated, so they may have to make cuts to their budget."

And that, in turn, could affect state funding for the city's Department of Human Services.  Cuts there could force the mayor and PICA back to the drawing board.

(Photo by KYW's Tony Hanson)