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Philadelphia Mayor Cherelle Parker proposes $1 rideshare tax to close school budget deficit
Philadelphia Mayor Cherelle Parker has announced plans to reduce the School District of Philadelphia’s roughly $300 million budget deficit. Those plans include a $1-per-ride tax on rideshares beginning next year.
PHILADELPHIA - Mayor Cherelle Parker announced Monday a plan to increase Philadelphia’s rideshare tax to $1 per trip, aiming to protect public school progress and prevent deep staffing cuts as the district faces a major funding shortfall.
Mayor Parker’s plan to stabilize school funding
The proposed amendment would raise the rideshare tax from 20 cents to $1 per trip, with the increase applying to rideshare companies, not individual drivers.
If approved, the new tax would take effect Jan. 1, 2027, and is expected to bring in $24 million in the first year and $48 million annually after that.
What they're saying:
"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 School District of Philadelphia is facing a $300 million deficit after the expiration of federal COVID relief funds.
Without new revenue, the district planned to eliminate about 340 school-based staff, including teachers and counselors.
The new funding could restore around 240 positions, including 130 teachers.
How the plan impacts schools and the city
Why you should care:
The proposal is designed to stabilize school operations, reduce disruption and preserve supports that contribute to safer, stronger learning environments.
A portion of the revenue would also fund free SEPTA passes for eligible school employees and help residents resolve license suspensions due to unpaid parking tickets.
The backstory:
The rideshare tax proposal comes after measurable gains under the district’s Accelerate Philly plan, including higher attendance, improved test scores, and rising graduation rates.
"Since launching Accelerate Philly, we have made real progress in our schools, from higher attendance to improved outcomes for students," said Dr. Tony B. Watlington, Sr., Superintendent.
The plan also includes a three-year pilot program with the Philadelphia Parking Authority to help residents clear unpaid parking tickets and restore driving privileges, potentially generating more revenue for schools.
It is not yet clear how rideshare companies will respond.
The long-term impact on school facilities and additional state funding efforts remains uncertain.
The Source: Information from the Office of Mayor Cherelle L. Parker.