Mayor Parker proposes $7 billion budget with new taxes to fund schools, housing, pothole repair

PHILADELPHIA (WPVI) -- Mayor Cherelle Parker on Thursday unveiled a $7 billion budget proposal that she said would build on the progress of her first two years in office, with major investments in public safety, economic mobility and homelessness services, and several new taxes to help pay for them.

The proposal includes funding for initiatives in the 2027 fiscal year, as well as funding for a five-year plan that the mayor says will keep Philadelphia on a good fiscal footing.

Parker spoke for more than two hours as she outlined her plan, which she described as a roadmap for helping residents achieve stability. The budget is heavily focused on economic mobility for residents.

"It is a roadmap to self-sufficiency. A path that makes it easier for every Philadelphian to move up and not just get by," she said.

More than half of the proposed budget - 52% - would go toward public safety, including funding for police, fire services and grassroots organizations. The second-largest share, more than $52 million, would support initiatives aimed at expanding economic opportunity.

The proposal includes $22 million to address homelessness by adding 1,000 shelter beds and related services. That funding would come from a proposed 2% increase in hotel taxes, which officials estimate would generate $20 million annually.

A separate tax proposal would add a 20-cent fee to each rideshare trip, generating an estimated $12 million a year for the School District of Philadelphia. The money would support initiatives like expanded Pre-K access and additional high school programs.

"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.

As part of a five-year plan, nearly $900 million would go to SEPTA, including funding for the Zero Fare program, which provides free transit passes to low-income residents, and $10 million to cover fares for city employees through the Key Program.

The budget also targets infrastructure issues, including potholes. Parker is proposing $7.1 million to create a dedicated "pothole squad," funded by a 25-cent tax on retail deliveries. The mayor said the tax would not apply to food, baby products, medication or medical devices.

Parker framed her proposal under the theme "One Philly, One Future."

City Council will now begin its review.

Council President Kenyatta Johnson said the plan addresses key concerns.

"Overall, looking at some of the key areas that address the quality of life in some of our neighborhoods in the city of Philadelphia. So I think it's a step in the right direction," he said, adding that the council would take a deep dive into the proposed taxes, paying special attention to whether there would be any potential adverse effects on industries and residents.

City Council will hold three public comment sessions on the budget, beginning March 25.

By law, the budget must be approved by June 30.