Philadelphia mayor unveils $7B city budget proposal for 2027

For her third time atop Philadelphia’s highest office, Mayor Cherelle Parker presented an annual city budget proposal to members of City Council and Philly residents on Thursday, March 12, 2026.

From City Hall on Thursday morning, Parker stepped to the front of council chambers to deliver her proposal at the end of City Council’s regularly scheduled meeting.

The mayor opened the day’s event, discussing her history in council chambers as a former councilmember before she announced a $7 billion “One Philly, One Future” budget proposal.

She called the new budget plan a “bold set of strategic investments and a roadmap to a safer, cleaner and greener Philadelphia, with access to economic opportunity for all.”

In discussing elements of the plan, Parker said the budget for 2027 would include:

• $25 million in community-based anti-violence grants
• $179 million in capital investments in the city’s Parks and Recreation Department
• $22 million in 2027 — and a plan for $110 million over five years — aimed at efforts to end homelessness in Philly
• $10 million for a modular housing project to build affordable homes for Philadelphians
• $10 million for workforce development training
• $1.9 million to expand Extended Day/Extended Year to 47 schools in 2027
• $7 million to establish a fellowship program for graduates of the City College for Municipal Employment program who are seeking employment
• $850,000 to start a Student Loan Help Center in order to assist Philadelphians struggling with college loan debt
• $33 million for HVAC improvements at libraries throughout the city
• $3.3 million to create a program to emphasize small and local businesses in how the city awards contracts
• $14.7 million to create 1,000 more summer job opportunities for young people throughout Philly
• $25 million for SEPTA’s Zero Fare program that provides low-income Philadelphians with transit passes
• $10 million to cover mass transit costs for city employees
• $7.1 million to create a “One Philly Pothole Squad” to address potholes on city streets

A few new taxes

Along with these efforts, Parker proposed two new taxes in order to generate an additional $12 million a year for the city’s school system.

The first new tax Parker called for would be the Transportation Network Company Tax and it would be a 20 cents per ride tax on rideshare rides that originate in Philadelphia.

It would begin in July of 2027 and, she said, the tax is expected to generate $9.6 million a year, which would all go directly to the School District of Philadelphia.

The second tax, the revenues of which would also go directly to the city’s school district, would be a land use tax for cell towers. This tax would be placed on the telecom companies that lease rooftop space for cell phone towers and, the mayor said, this is expected to generate $2.4 million a year, as well.

Along with these new taxes, Parker said she hopes to “level the playing field” for small, local Philadelphia businesses by closing a loophole in the city’s sales and use tax by requiring remote sellers outside the city to charge a two-percent local sales tax.

“Right now, any business located outside Philadelphia only has to charge the state’s six-percent sales tax on something you buy online… while our local businesses have to collect the full eight-percent: the six-percent for the state and the two-percent for the city” said the mayor. “Just because you’re out of town it doesn’t mean you get a leg up on our local businesses.”

Parker said it’s expected that this will generate $1.5 million annually for the city.

The mayor also called for another new tax, the Retail Delivery Tax, that would add a 25 cent fee onto certain goods — essential delivery items would be excluded, including food, baby products, medications, and medical devices.

This tax would be charged to retailers.

This tax, she said, would be used to help afford the proposed “One Philly Pothole Squad.”

“Fixing our streets and patching potholes costs money,” the mayor said.

Parker said this tax is expected to generate $15 million a year and that revenue would be used solely to improving road conditions across the city.

Then, in an effort to afford a $22 million investment into preventing homelessness in the city, Parker said her budget calls for a new two-percent hotel tax.

This tax, she said, is expected to provide $20 million annually.

Public input on the budget proposal sought

Following the presentation on Thursday, City Council will hold a round of public hearings on the proposal.

The first City Council Chambers budget hearing will be held on Tuesday, March 24, at 10 a.m. in City Council Chambers. Additional hearings will take place through May 6, 2026.

Though, officials said the schedule could change, public comment sessions are scheduled for March 25, 2026 on tax bills, April 22, 2026, for School District of Philadelphia impacts, and May 6, 2026 to provide a final opportunity for public comment.

City Council will also hold Neighborhood Budget Town Hall meetings across Philadelphia in order to discuss the proposed budget. Dates and locations for these town hall meetings, officials said, have not yet been finalized.

Parker too plans to hold public town halls at neighborhood across the city to provide residents with a chance to provide input on her proposals.

Dates for these town halls were not immediatley provided.

City Council has 90 days before the end of the current fiscal year — which ends on June 30, 2026 — to approve a city budget and, officials noted, the city cannot plan to spend more money in a budget proposal than it is estimated will be collected in tax revenue.

This is a breaking news story. It will be updated as new information becomes available.