PHOTO: Chris Mansfield & Durrell Hospedale
Last Thursday, Mayor Cherelle Parker visited Philadelphia City Council chambers to unveil her 2027 Fiscal Year budget.
By Denise Clay-Murray
Ending street homelessness, a focus on workforce development, more public safety and more money for education are among the things Mayor Cherelle Parker proposed in her 2027 fiscal year budget.
She also proposed the means to pay for them, and things like staying in a hotel, getting an Amazon delivery and taking an Uber to your destination may cost a little more.
As part of Parker’s $6.97 billion plan, funding will go toward expanding the number of shelter beds and services for the City’s homeless. In December, the mayor signed an executive order aimed at combating street homelessness and the Hope 220 Homeless Service Center, which also provides wrap-around services like healthcare and employment assistance, opened on Tuesday.
The plan, which has a goal of creating 1,000 new shelter beds, hopes to build on the promise of Hope 220, Parker said.
“Hope 220 is more than a shelter,” she said. “It is a solution center. It connects Philadelphians to housing, healthcare, and the support they need to move toward long-term stability. My administration is proposing $22 million in fiscal year 2027 and $110 million to support our goal of ending street homelessness in Philadelphia.”
To pay for the plan, Parker has proposed a 2% increase in City’s hotel tax that would raise it from 15% to 17%. Visitors coming to the City for America 250 celebrations probably won’t be hit by the tax increase, which would be implemented in August. The tax, if implemented, would generate an additional $20 million for the city, but it must be approved by the state legislature.
Parker is confident that she can make that happen.
“We will work with our partners at every level of government to pass the legislation needed to enact this hotel tax and help our fellow Philadelphians live with safety and dignity,” she said.
The budget also includes the creation of a new Economic Mobility Cabinet that will have $15 million over the next five years to create what Parker called Career Connected Learning slots, or $14 million over that same period for financial counseling connected to the Housing Opportunities Made Easy Initiative and $10 million in Fiscal Year 2027 for workforce development.
To pay for this, and other ways to level the playing field for local businesses, Parker wants to close a loophole in the Sales and Use tax that would require out of state sellers to pay the 2% Philadelphia Sales tax in addition to the 6% state sales tax. This would require approval from the Commonwealth and would generate $1.5 million annually for the City and its pension fund.
The proposed taxes that are getting the most attention are the proposed Transportation Network Company tax and the Retail Delivery tax.
The Transportation Network Company tax is a .20 per ride tax on rideshare services like Uber and Lyft that would begin on July 1, 2027.
This, coupled with a modification of the city’s Use and Occupancy tax regarding cell phone towers, will represent new funding for the School District of Philadelphia, Parker said.
Because one of the things Philadelphians complain about the most are the potholes that decorate some of the City’s streets, the budget includes a $7.1 million outlay for what Parker calls the “One Philly Pothole Squad.” This group would serve as a rapid response team, fixing potholes in the city’s six highway districts.
But it won’t be cheap. Which is where the Retail Delivery tax comes in. This tax, which is being charged to retailers, would charge .25 per order on everything but essential items such as food, baby products and medications. If implemented, the tax would generate $15 million annually and would go into effect on July 1, 2027.
“Businesses that rely on our streets for deliveries will help pay to maintain them,” Parker said. “Makes sense, right?”
Now that the budget has been presented, it goes to Council for consideration. Budget hearings will begin in Council Chambers on Tuesday, March 24 at 10am. Residents have the option of coming to City Hall, or to watch the hearings on the City of Philadelphia’s cable channel.
You can also watch the hearings on City Council’s website, phlcouncil.com.
There will also be a series of Community Budget Town Halls put together by both City Council and the Mayor’s Office. Dates on those hearings have not yet been announced.
The SUN is also giving readers a chance to give their input on the budget. Is there anything you’d like explained a little better? If so, send your questions to: [email protected]. They’ll be answered in future stories.
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