Philadelphia rideshare tax proposal sparks tense debate over school funding

PHILADELPHIA (WPVI) -- A proposed $1 rideshare tax tied to Mayor Cherelle Parker's budget plan ignited one of the most heated City Council clashes of the year, as officials argued over how to address the school district's financial crisis without burdening residents.

The administration says the tax would serve as a critical funding stream for Philadelphia schools, which face a $1 billion deficit.

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"We have a $1B deficit, and we have to do what we can. The district has said this is not a budget plan," said Chief Education Officer Dr. Debora Carrera. "We cannot forget that we are severely underfunded."

Councilmember Curtis Jones Jr. said he supports the goal of fully funding schools but questioned the impact of the proposal.

"I support fully funding our schools," Jones said, but what I am not going to do is raise taxes on one hand, cut services on the other and tell them that makes sense."

Jones referenced the district's controversial plan to close 17 schools to cut costs, an issue raised earlier in the hearing.

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The exchange unfolded during a Committee of the Whole session, where the city's chief education and finance officers defended the rideshare tax. The proposal would add an extra $1 to fares within the city, which the administration says could be paid by rideshare companies or passed on to riders.

Jeffery Young, speaking on the legislation, said, "The legislation itself says they have to collect the tax from the passenger."

Rob Dubow added, "They can then decide how they want to pass that on... increased their fee or hold riders harmless."

Rideshare companies, including Uber and Lyft, strongly oppose the measure.

Uber has already informed customers the cost would be passed directly to riders.

City officials estimate the tax would generate $50 million annually for the school district and preserve 340 positions.

Budget hearings are scheduled to continue through May.