Philadelphia City Council holds first hearing on Mayor Parker’s proposed $6.9B budget plan

PHILADELPHIA - Philadelphia City Council held its first hearing on Mayor Cherelle Parker’s proposed $6.9 billion budget for the 2027 fiscal year at City Hall on Tuesday, March 24, in front of the Committee of the Whole. 

A big topic of discussion was centered on a new $1 rideshare tax aimed at supporting the city’s schools.

Seven weeks of budget hearings begin at City Hall

What we know:

Mayor Parker’s administration proposed a $1 tax on rideshare trips, which would generate $48 million for the School District of Philadelphia. 

This is an increase from the original 20-cent-per-ride proposal, which was expected to raise $9.6 million.

What they're saying:

"Did they not know there was a $48 million deficit during the first presentation to the administration?" said Kenyatta Johnson, City Council President, who questioned the process that led to the updated proposal.

Mayor Parker’s administration said the new tax would help save 240 school district jobs that were created with pandemic relief funds. 

The district currently faces a $300 million structural deficit, but officials said the tax would not fully resolve that gap.

Vanessa Garrett Harley, Chief Deputy Mayor, said, "We do know that the loss of these positions if we do not get this funding and support the school system in some way could potentially have some catastrophic effects on our young people."

Councilmembers question impact on residents and school funding

The other side:

Councilmember Jeffrey Young Jr. said, "We are asking the city of Philadelphia to raise an additional $48 million that is only equivalent to about 1% of the total school district budget. We’re never going to really feel what that 1% gets us."

Councilmember Cindy Bass raised concerns about the cost being passed on to consumers, saying, "When we had soda tax the idea was that the distributor would pick up the cost. Clearly, that has not happened in any case whatsoever and so now as we get ready to move forward how do we make sure it’s not passed along to the consumer in this case as well. I think it’s a reliable source of transportation many rely on and we need to make sure we’re not hurting the constituents."

Some councilmembers supported parts of the mayor’s budget, including investments in economic mobility, efforts to end homelessness, and affordable housing.

However, they said more work is needed.

"I do think we have to pause on giving developers a 20-year tax abatement with no affordability requirement when you said that affordable housing is our biggest priority as a city, so there are areas that I think we have to push a little bit harder," said Councilmember Jamie Gauthier.

Several town hall meetings are planned over the coming weeks to discuss the budget proposal further:

Tuesday, April 7, 2026 | 6:00 pm - 7:30 PM

The Kroc Center
4200 Wissahickon Avenue, Philadelphia PA 19129

Tuesday, April 28, 2026 | 6:00 pm - 7:30 PM

Upper Room Baptist Church
7236 Ogontz Avenue, Philadelphia, PA 19138

Thursday, April 30, 2026 | 6:00 pm - 7:30 PM

Mummers Museum
1100 South 2nd Street, Philadelphia, PA 19147

Tuesday, May 5, 2026 | 6:00 pm - 7:30 PM

Salt & Light Church
5736 Chester Avenue, Philadelphia, PA 19143

What we don't know:

It is not yet clear how much of the rideshare tax will be passed on to consumers or how the funds will directly impact the school district’s budget and services.