Philadelphia Mayor Cherelle Parker has presented a $6.7 billion budget proposal for fiscal year 2026, outlining major investments in public safety, housing, education, and economic development while preparing the city for America’s 250th anniversary celebrations.
The proposal includes tax cuts, infrastructure upgrades, and expanded social programs, setting the stage for months of City Council negotiations before the June 30 deadline.
Parker’s budget slashes the city wage tax and the Business Income and Receipts Tax (BIRT) while proposing to eliminate the 1% Construction Impact Tax. However, the real estate transfer tax and parking meter rates in Center City will rise to help fund the School District of Philadelphia.
A key highlight of the budget is an $800 million bond initiative under Parker’s Housing Opportunities Made Easy (HOME) Initiative, which aims to create or preserve 30,000 housing units.
Councilmember Jamie Gauthier, who chairs the Committee on Housing, Neighborhood Development, and the Homeless, praised HOME, calling it a necessary step to address the city’s housing crisis.
Public safety remains a major focus, with $186 million earmarked for law enforcement, including $67 million for a new forensic laboratory and additional funding for the expansion of the Police Assisted Diversion program. The budget also increases funding for traffic safety under the Vision Zero initiative, raising its allocation to $5 million—up from $1 million last year.
Education is another priority, with $5.3 million designated for various initiatives, including expanding the extended-day and extended-year school program to 15 more schools, bringing the total to 40. An additional $12 million is allocated for teacher salaries to address staffing shortages.
The city is also preparing for the U.S. Semiquincentennial celebrations in 2026, with an additional $40 million for events, security, and infrastructure improvements, bringing Philadelphia’s contributions to $100 million.
Parker described the celebrations as an opportunity to showcase the city as the birthplace of democracy on the world stage.
Concerns remain about the city’s financial health. With federal American Rescue Plan Act funds set to expire and potential cuts to federal grants, officials acknowledge that difficult decisions may lie ahead.
Parker’s administration has set aside a $95 million reserve to mitigate potential funding shortfalls, while the city’s pension fund, now 65% funded, is on track to reach full funding by 2033.
The City Council will hold hearings and town halls to debate the budget, and final approval is required by June 30.
