Half of Philly school district's $4.6B budget comes from local taxes: analysis

A new analysis by Philadelphia’s City Controller’s Office found that half of the School District of Philadelphia’s $4.6 billion operating budget comes from local revenue sources.

On Tuesday, April 21, Philadelphia City Controller Christy Brady released the April 2026 Municipal Money Matters report that shows that the state of Pennsylvania is the school district’s largest single funding source, providing more than $2 billion annually to support operations. However, the report also indicates that local revenue sources account for the remaining funding, with the City of Philadelphia providing dedicated tax revenue and direct contributions from the General Fund, according to a release.

“Understanding how our public schools are funded is essential to transparency and accountability,” said Brady. “This month’s report gives residents a clear picture of where public education dollars come from and how dependent our schools are on decisions made at the city and state levels.” 

According to the report, the largest local revenue sources in the past school year were the Real Estate Tax, generating nearly $1.2 billion, followed by the City’s General Fund contribution at $285 million, and the Business Use and Occupancy Tax at $200 million.

Tuesday’s report comes amid a controversial proposal introduced by Mayor Cherelle Parker to add a new tax to rideshare trips.

In March, Parker announced she was amending an initial proposal to tax rideshares 20 cents per ride to $1 per ride instead. She said the increase would help close a $300 million budget gap in the school district that could result in the loss of 340 jobs — including 130 teachers, 55 student climate staff and 55 other school based positions.

The rideshare tax proposal has sparked criticism and mixed reactions from residents. Uber and Lyft have also spoken out against the plan.

Lyft created an online petition to urge councilmembers to vote down the rideshare tax. Meanwhile, Uber sent an alert to customers on Monday to encourage them to attend a public input hearing planned for Tuesday.

In Tuesday’s report, Brady said it is “imperative” to be transparent when it comes to the school district’s budget funding, especially now that they are faced with another budget shortfall, and emphasized the importance of local and state policy decisions to the city’s public education system.

“Over the years the City and the School District have expanded and diversified the streams of local funding that our public schools have come to rely on,” said Brady, “It is imperative, as the School District faces yet another budget shortfall that threatens education quality and puts jobs at risk, that we provide transparency around this strategy to ensure tax dollars are being used efficiently and effectively.” 

Here’s a breakdown of other local tax and non-tax revenues — including rideshare — from last year:

Read the full report below:

Tuesday’s meeting on the proposed 2027 budget, which includes discussion of the new tax to rideshares, is set to start at 1 p.m. at Philadelphia City Hall.

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