Mayor Cherelle Parker unveiled a proposed $7 billion city budget Thursday, outlining new investments in public safety, education, housing, and infrastructure funded through several new taxes and fees.
The fiscal year 2027 spending plan represents an increase from last year’s $6.8 billion budget. Parker described the proposal as part of her agenda to address public safety, economic mobility, and quality-of-life issues across Philadelphia.
More than half of the proposed spending—about 52 percent—would go toward public safety initiatives, according to the mayor’s budget proposal.
One of the most notable revenue proposals is a 20-cent fee on rideshare trips, including services like Uber and Lyft. City officials estimate the tax would generate about $12 million annually, which would be directed to the School District of Philadelphia beginning in July 2027.
“We’re going to do everything that we can to make sure that our school district has what it needs because our kids are worth it and they deserve it,” Parker said during her budget address.
Parker also proposed increasing the city’s hotel tax from 15.5 percent to 17.5 percent, which officials estimate would generate about $20 million annually.
The funding would help support efforts to address homelessness, including adding 1,000 shelter beds and expanding related services.
Overall, homelessness initiatives would receive $22 million in the next fiscal year, with spending projected to reach $110 million over five years.
The proposal also includes a 25-cent fee on retail deliveries, which would fund a new $7.1 million “One Philly Pothole Squad” focused on addressing road repairs.
Essential items such as food, baby products, medication, and medical devices would be exempt from the fee.
The budget includes nearly $900 million in funding for SEPTA over five years, supporting programs such as the Zero Fare initiative for low-income residents and the Key Advantage transit program for city employees.
An additional $30 million would support Vision Zero programs aimed at improving pedestrian and cyclist safety across the city.
Parker’s proposal also includes investments in workforce development and community initiatives, including:
- $10 million for workforce training programs
- $7 million for a municipal employment fellowship program
- $25 million for community-based anti-violence grants
- $14.7 million over five years to expand summer job opportunities for young people
- $3.3 million to support contracting opportunities for local businesses
- $850,000 to establish a student loan assistance center
Capital investments under the proposed budget include:
- $179 million for parks and recreation facilities
- $3 million for Lemon Hill improvements ahead of the FIFA World Cup FanFest
- $33 million for HVAC upgrades in library buildings
- $1 million for capital improvements at the Dell Music Center, along with a $50,000 operational increase
The proposal also maintains a $50 million commitment announced in 2022 to relocate the African-American Museum in Philadelphia.
City Council President Kenyatta Johnson called the proposal “a step in the right direction” but said council members would closely review the proposed taxes and their impact on residents and businesses.
Council will begin public comment sessions March 25, with hearings continuing through the spring. The final budget must be approved by June 30, with the new fiscal year beginning July 1.
