Philadelphia passes $7.1B FY27 budget with major investments in safety, housing, jobs

PHILADELPHIA - Mayor Parker praised City Council’s final approval of the Fiscal Year 2027 Budget on Thursday, June 11, highlighting what she called "historic investments" in economic mobility, housing, public safety, and education.

Major investments target safety, housing, and jobs 

What we know:

The $7.1 billion budget focuses on safer neighborhoods, cleaner streets, affordable housing, and more job opportunities for residents. 

Mayor Parker said, "This budget is about delivering results for the people of Philadelphia." 

The plan includes $51 million for economic mobility and workforce development, $25 million in grants for community violence intervention, and continued support for building and repairing 30,000 housing units. 

It also sets aside $63.5 million for wellness programs and services addressing homelessness and behavioral health. 

The budget will fund 1,000 new Career Connected Learning slots for youth, bringing the total to 9,000, and expands financial counseling and support for small businesses. 

Leaders say these investments were shaped by feedback from thousands of residents during town halls and public meetings. 

Education and school jobs protected for now 

The budget preserves about 340 school-based positions that were at risk of being cut next year. 

Mayor Parker said, "From the beginning of this budget process, we said that protecting educational opportunities for our children was non-negotiable." 

The city is expanding after-school and early childhood programs, increasing support for the Community College of Philadelphia, and growing dual enrollment options for students. 

However, the funding for these 340 jobs is only guaranteed for one year. 

Mayor Parker and City Council President Kenyatta Johnson said they are committed to finding a recurring source of revenue to keep these positions in the future. 

Infrastructure and quality-of-life improvements 

The budget includes $181 million for SEPTA, funding for two new health centers, more than $60 million for paving and ADA improvements, and investments in parks, libraries, and cultural institutions. 

The city is also dedicating new resources to fight illegal dumping and improve public spaces, as well as the largest labor reserve ever included in a five-year plan to support city workers. 

Mayor Parker said, "Together, we are building a city that is safer, cleaner, greener, with access to economic opportunity for all." 

The FY27 budget takes effect July 1, 2026, and is part of the administration’s "One Philly, One Future" agenda.

The backstory:

Mayor Parker's plan to charge rideshare users $1 per trip was met with controversy when it was first proposed in March. The money collected from the proposed tax was planned to fund the city's public schools system, which is facing its own budget deficit. 

"We have made real progress in our schools, and I am not going to allow us to lose ground. This is about protecting that progress and making sure every child in Philadelphia has a real shot," said Mayor Parker.

The proposal came with pushback from rideshare users and companies like Uber and Lyft. In a statement, Uber said the tax would "worsen Philadelphia’s affordability and transportation crisis," adding that rideshare already provides millions to city schools annually.

City council also voted down a proposed 25-cent tax on delivery services from companies like Amazon and GoPuff. Money from that tax, Parker said, was designed to fund infrastructure improvements like fixing potholes.

The delivery tax excluded essentials such as food, baby products and medication, and would have been levied on retailers, not individual consumers. Parker estimated the tax would have generated $15M annually.

The hotel and short-term rental tax, including platforms like Airbnb, lost steam after it failed to gain support from state lawmakers, according to a source at City Hall. Money collected from that tax would have gone towards addressing homeless prevention services.

Following council's preliminary approval, Mayor Parker issued a statement addressing the elusion of several of her proposals. 

She says the omitted proposals were put forward by her administration to, "make our city more affordable, generate predictable recurring funding for our schools, help end street homelessness, and improve neighborhood roads and infrastructure."

She added that she would not be giving up on those proposals, and that the people of Philadelphia did not 'elect her to accept the status quo. 

Read her full statement below:

"Today, City Council gave preliminary approval to the Fiscal Year 2027 Budget. This budget includes important investments in affordability, economic mobility, housing, education, workforce development, public safety, and neighborhood quality of life. It advances key priorities of my administration's Economic GPS agenda, and it moves Philadelphia one step closer to a budget that helps more residents achieve Growth, Prosperity, and Security. Supporting and helping to grow small businesses, increasing the number of schools offering year-round educational enrichment activities through our Extended Day, Extended Year program, putting our H.O.M.E. program dollars to productive uses, extending our Neighborhood Wellness Court, expanding the capacity of our Taking Care of Business commercial corridor cleaning program – all these initiatives and more are including in this FY27 Budget. At the same time, I want to be honest with the people of Philadelphia. While this budget contains meaningful investments, it does not include several proposals my administration put forward to make our city more affordable, generate predictable recurring funding for our schools, help end street homelessness, and improve neighborhood roads and infrastructure.  City Council did not approve our proposal to generate a dedicated, recurring source of revenue for the School District of Philadelphia. Our goal was clear: protect 340 school-based positions and continue the progress our children have made. A one-time band-aid is not the same as a long-term recurring commitment. Council also did not approve our proposals to help fund our plan to bring more homeless Philadelphians inside, and to address critical road and infrastructure needs.  But let me be clear: I am not giving up on any of these priorities, and I am not going away. The people of Philadelphia did not elect me to accept the status quo. They elected me to tackle the challenges that make it harder for families to get ahead and to create pathways to economic opportunity in every neighborhood of our city.  That work continues. I look forward to working with City Council. I will never stop fighting for our children and the people of Philadelphia."

What we don't know:

Details on specific projects or timelines for infrastructure improvements were not provided.

NewsCherelle ParkerPhiladelphia City Council