This review discusses the fiscal difficulties of the City and School District of Philadelphia and describes the projection of expenditures and receipts and the mounting deficits implied by these projections. Three different projections are made to point out alternative fiscal outlooks: a high projection that corresponds to strong economic conditions and aggressive spending; a medium projection that assumes some strengthening in the economy and slower paced public spending; and a low projection that corresponds to weak recovery and little attempt to increase the amount of services provided by government in Philadelphia. The article summarizes the projections, and emphasizes the medium projection. An appendix includes a more detailed description of all projections. (Author/JF)