Pennsylvania Intergovernmental Cooperation Authority

At that time, Philadelphia faced a growing operating deficit, mounting overdue bills, and credit ratings which were dropping below investment grade.

PICA was founded to "foster the fiscal integrity of cities of the first class...and provide for proper financial planning procedures and budgeting practices.

"[1] At its inception, PICA had the power to issue bonds to benefit the City of Philadelphia, an important early role.

Elected State officials (Governor, President Pro Tempore of the Senate, Minority Leader of the Senate, Speaker of the House of the Representatives, Minority Leader of the House of the Representatives) appoint the voting members of the Board, while the ex-officio members are Philadelphia's Director of Finance and the Budget Secretary of the Commonwealth of Pennsylvania.

The current voting Board members are PICA was designed to assist the City of Philadelphia with short-term financing, while overseeing a long-term financial planning process in order to restore the confidence of residents, public officials, and investors in the ability of the City to maintain financial stability.

The legislative intent of the Act was to assure that Philadelphia is prepared to manage not only the financial pressures the City was experiencing at the time of PICA's establishment, but to avoid such situations in the future while safeguarding for their consequences.

The plan is also required to include debt service projections, a payment schedule for legally-mandated services due over the life of the plan, and a schedule showing the number of filled and unfilled City employee positions, with estimates of employee wages and benefits costs.

In this event, the City must submit for consideration of the PICA Board a revised plan within a statutorily determined time frame.