Title
Authorizing the Committee on Fiscal Stability and Intergovernmental Cooperation to hold public hearings to examine the financial condition of the City and School District of Philadelphia in light of a recent downgrade of the City's general obligation bond rating, to examine the impact that local control of the School District will have on the City's fiscal condition, and to further explore cost-efficiency and non-tax revenue generating measures that could improve the City's and School District's long-term fiscal health.
Body
WHEREAS, The City of Philadelphia continues to face pressure from credit rating agencies to further decrease unfunded pension liabilities, further increase its fund balance and reserve levels, expand its tax base in a sustainable way, and further strengthen its fiscal management; and
WHEREAS, Earlier this year, the School Reform Commission voted to dissolve itself and return control of the School District of Philadelphia to the City of Philadelphia; and
WHEREAS, Given the challenges associated with regaining local control of the School District, the City needs to be thoroughly informed on how the reconstituted Board of Education will manage the assets, liabilities, revenues and expenditures that will be under its purview; and
WHEREAS, In late March 2018, S&P Global Ratings downgraded the City's general obligation bond rating to A from A+, citing uncertainty on how the City will address its long-term obligations to manage growing costs associated with the City's pensions and the School District of Philadelphia; and
WHEREAS, Absent changes to state law, the School District of Philadelphia will continue to experience fast growth in pension and non-district operating expenses; and
WHEREAS, The City's FY19-23 Five-Year Plan includes approximately $260 million in federal funding reserves (against the risk of future federal cuts). Although that amount is not currently included in the City's projected fund balances, if it...
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