Sam Katz, a founder of Public Financial Management Inc., will serve on the board of the Pennsylvania Intergovernmental Cooperation Authority, which reviews Philadelphia’s budgets and five-year fiscal plans.
Gov. Tom Corbett last week picked Katz, 61, to serve on PICA’s board. Along with his work at PFM, Katz has headed other businesses in Philadelphia. He has run for mayor as a Republican and also sought the governor’s office.
“Sam Katz is a proven civic leader whose well-established financial expertise will clearly benefit the authority and the city,” Corbett said in a statement. “With Sam’s knowledge and leadership, the authority will provide strategic guidance in helping Pennsylvania’s largest city return to fiscal health.”
Mayor Michael Nutter last week released his $3.45 billion fiscal 2012 budget proposal. It does not include any new taxes or fees, and cuts spending by $2.9 million.
A temporary increase in the sales-tax of one percentage point is still set to expire in fiscal 2015. That spending plan could change depending on whether Philadelphia will need to absorb cuts in state aid. Corbett will release his budget proposal Tuesday.
“The city continues to face a triple threat from cuts in federal and state funding as well as cuts to Philadelphia School District resources,” Nutter said in his budget address before the City Council.
“We don’t know exact details yet but as we wait for possible cuts, we ask that these cuts don’t force us to balance our budget on the backs of those who are least able to carry the weight.”
Philadelphia has $1.2 billion of outstanding general obligation debt. Its combined GO and tax-supported debt is $3.8 billion.
Fitch Ratings and Standard & Poor’s rate the city A-minus and BBB, respectively. Moody’s Investors Service rates the city A2.