Unfortunately, the rumor is true. The First Judicial District court system, about two years ago, unfortunately stepped back from overseeing criminal indigent defense. The system was turned back to the city of Philadelphia for payment and review. Philadelphia appears only to be guided by giving monies.
As one might know, each county has to pay for its own indigent criminal defense. There is no uniform statewide system with funds from the state. Each county has its own system and funds it locally. Obviously, that is a very unfortunate system. The system is often underfunded and there is no uniform system with very difficult skill levels of the lawyers.
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