Philadelphia leaders running out of time to pass preliminary budget, tax hikes on the line

PHILADELPHIA (WPVI) -- Philadelphia City Council is running out of time because they have to pass a preliminary budget on Thursday so they can make a final vote next week before going on summer recess.

Tax hikes to fund schools, fix potholes and help the homeless are all major debates.

"See you tomorrow morning," said Council President Kenyatta Johnson as the committee meeting wrapped up on Wednesday.

Johnson sent council members home telling them to return to City Hall to meet at 9 a.m. Thursday.

It will be their last scheduled meeting to make early approval of Mayor Cherelle Parker's $6.9 billion budget proposal.

RELATED: Philadelphia mayor's budget plan proposes new taxes on hotels, deliveries and ride shares

If approval is not reached, council will have to add special meetings over the next few days to reach an agreement before the final vote on July 11.

"We'll wrap it up. We have to do it," said council member Nina Ahmad. "My concern is that we make sure our schools are whole."

We're told the main hold-ups are on a number of proposed tax hikes, which include a tax on ride-share services, like Uber and Lyft.

Mayor Parker has been pushing to use the tax to help fund the school district, which is facing a funding crisis and staffing cuts.

There's also the mayor's proposed tax increase on delivery companies, like Amazon, to support road improvements and fixing potholes.

Lastly, the tax hike on short-term rentals, like Airbnb, to fund initiatives combating homelessness on city streets.

Every council member and the mayor's office all want something out of this budget, so it's about finding compromise.

"No matter how 10 toes down people sound, there's always room for negotiations," said councilman Curtis Jones, Jr. "Time collapses in these last 24 hours because the president of city council and the mayor have some real serious horse trading to do."

Approval of the preliminary budget must happen Thursday, the final vote next Thursday and then the budget goes into effect on July 1.