Pennsylvania Intergovernmental Cooperation Authority

The Pennsylvania Intergovernmental Cooperation Authority, or PICA was created through the 1991 legislation, "Pennsylvania Intergovernmental Cooperation Authority Act for Cities of the First Class," or the PICA Act. PICA was created to provided financial assistance to the City of Philadelphia during a severe financial crisis. At that time, Philadelphia faced a growing operating deficit, mounting overdue bills, and credit ratings which were dropping below investment grade. The City had instituted a municipal hiring freeze and the quality of municipal services was eroding s a result.

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

At its inception, PICA had the power to issue bonds to benefit the City of Philadelphia, an important early role. These bonds were intended to provide funds so the City could avoid insolvency and continue with essential capital investments. Where as the power to issue bonds for these original purposes has expired, PICA remains authorized to issue refunding bonds, the proceeds of which can be granted or loaned to the City. PICA has made available $1.138 billion in direct assistance to the City through debt issuance and capital program earnings. This funding was allocated to deficit elimination and indemnities, capital projects, and retirement of of certain high-interest debt. Currently, PICA's bond issuance powers are limited to refinancing existing PICA debt

The PICA Act established the PICA Board as a governing board of five voting members, and two ex-officio non-voting members. 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 Kevin Vaughan, Chair; Alan C. Kessler, Esquire, Vice Chair; Michael A. Karp, Secretary/Treasurer; James F. Cawley, Assistant Secretary/Treasurer; and Tina Byles Williams.

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