Ensuring Fiscal Stability in Philadelphia: A Conversation with Marisa Waxman from PICA

Welcome back! I’m Katrina Pratt Roebuck, founder and CEO of Uplifme, a national resource hub dedicated to social service events and highlighting the outstanding work of community organizations across the country, especially here in Philadelphia. Today, I’m joined by Marisa Waxman, the Executive Director of PICA—the Pennsylvania Intergovernmental Cooperation Authority. We’re here to discuss PICA’s role in maintaining Philadelphia’s financial stability and how it impacts the city’s residents.

What is PICA and Who Does It Serve?

PICA was established in the early 1990s when Philadelphia faced a severe financial crisis. The city was nearly bankrupt, struggling to pay vendors, and couldn’t even afford uniforms for police cadets. To rescue Philadelphia from this dire situation, the state created PICA as an independent authority to provide financial oversight and help stabilize the city’s finances.

PICA played a crucial role in helping Philadelphia secure loans at a time when the city’s credit rating was abysmal, and no one was willing to lend to it. This authority was instrumental in getting Philadelphia back on track, but it wasn’t just about borrowing money. PICA also imposed strict conditions: the city had to manage its budget more responsibly, adopt a five-year financial planning process, and ensure its finances were transparent and sustainable.

Philadelphia’s Financial Comeback

Thanks to PICA’s oversight, Philadelphia has made tremendous progress over the years. The city has significantly improved its credit rating, now at its highest in four decades. This improved credit score means lower interest rates on loans, the ability to refinance old debts at better terms, and overall better financial health. Additionally, Philadelphia has made strides in funding its pension obligations, which is crucial for maintaining long-term fiscal health.

Despite these achievements, there is still work to be done. Recently, PICA was renewed for another 25 years, ensuring continued oversight and financial planning for the city. By requiring a five-year financial plan, PICA prevents short-term fixes and encourages long-term fiscal stability. This approach ensures that the city remains accountable and transparent in its financial dealings, ultimately benefiting all Philadelphians.

The Role of PICA in Everyday Life

For residents of Philadelphia, PICA’s work might seem distant, but it has a direct impact on their daily lives. From the amount of property taxes residents pay to the quality and availability of public services like libraries, recreation centers, and safety, PICA’s oversight ensures that the city allocates resources effectively and sustainably.

Understanding the city’s financial health is crucial for residents, especially when making decisions about buying homes, starting businesses, or voting in local elections. PICA provides valuable insights into the city’s budget and financial decisions, offering transparency and allowing residents to advocate for the services they care about most.

How PICA Operates

PICA operates independently from Philadelphia’s city administration. It is governed by a bipartisan board appointed by state leaders, including the governor and legislative leaders from both parties. This structure ensures that PICA remains objective and focused on its mission of promoting fiscal responsibility.

Marisa Waxman and her team of dedicated professionals at PICA are committed to making complex financial data accessible and understandable for everyone. They regularly publish reports, blog posts, and hold public meetings to keep residents informed about Philadelphia’s financial status and the decisions impacting their lives.

Getting Involved and Staying Informed

For those interested in learning more about Philadelphia’s finances or getting involved, PICA offers several resources. Their website, pica-pa.org, provides access to reports, meeting schedules, and an e-newsletter for updates. Residents can attend public meetings, ask questions, and engage with PICA staff to better understand the financial landscape of their city.

Conclusion

Philadelphia has come a long way since its financial crisis in the 1990s, thanks in large part to the oversight and support provided by PICA. However, the work isn’t done, and PICA’s continued presence ensures that Philadelphia remains on a path of fiscal responsibility and growth.

Thank you, Marisa Waxman, for sharing insights into PICA’s vital work and how it impacts the lives of Philadelphians. Be sure to check out PICA’s resources to stay informed about the city’s financial health and how it affects you.

Stay tuned for more conversations with leaders making a difference in our community!