June 11, 2026
Colleen Claggett/For PhillyVoice
City Council unanimously approved the budget for fiscal year 2027, which starts in July. The final plan does not include Mayor Cherelle Parker's proposed taxes on rideshare services and short-term rentals.
City Council unanimously approved the next city budget Thursday during its final meeting before its summer recess. It came one day after Mayor Cherelle Parker and council members leaders pledged to find recurring revenue streams to boost future funding for the School District of Philadelphia — a key issue that prompted weeks of debate.
The $7.1 million plan, which takes effect in July, does not include a $1-per-ride fee on rideshare trips, which Parker had pitched as way to raise $48 million for the school district. It also does not include her proposed 6% tax increase on short-term rentals like Airbnb and Vrbo. But it includes an occupancy tax for cell phone towers and funds for the Zero Fare and Key Advantage programs, which offer free and discounted SEPTA rides to qualifying individuals.
MORE: Philly school district will not cut 340 jobs after city leaders commit to finding funding
The school district approved its own budget last week, which included $225 million in spending cuts and eliminated 340 jobs without layoffs. Parker had proposed the rideshare fee to prevent those job cuts. Council axed her plan last week, but included $48 million for the district in the budget.
On Wednesday, Parker and Council President Kenyatta Johnson pledged to find a recurring revenue streams for the district, which faces a $300 million deficit. That commitment allowed the district to stave off the cuts. The cell phone tower tax will bring in $2.4 million for the school district annually.
Councilmembers said the rideshare tax would have needed more time for approval, and the hotel and short-term rental tax would have required additional support from state legislators in Harrisburg, which was unlikely. Another proposal to charge a 25-cent fee on deliveries from retailers like Amazon also was eliminated from the final budget. That fee was aimed at providing funds for pothole repairs.
Despite Parker and City Council disagreeing on tax proposals, Johnson said before Thursday's meeting that he was "pretty confident" that City Council would approve the spending plan.
"We continue to move forward, working in partnership with the administration, as well," Johnson said. "At the end of the day, what you see is the will of members of City Council."
Among other measures, the budget allocates $33 million over five years to the Free Library of Philadelphia for HVAC systems and repairs and $6.5 million to add 100 pre-Kindergarten seats and two more charter schools to the year-round schooling program. It also includes $30 million over five years for the Vision Zero pedestrian and traffic safety program. Parker had eliminated funding for Vision Zero in her first budget, but restored it last year.
City Council also approved a bill to ban carriage operators and a legislative package that expands a water bill assistance program and calls on the city to help pay large bills caused by long-term water meter failures.
