Photo: phila.gov
Included in the plan is more money for public safety, cuts to business and wage taxes, and the mother of all home loans.
By Denise Clay-Murray
Last Thursday, Mayor Cherelle Parker came to Philadelphia City Council chambers to deliver her second budget address.
In a 90-minute speech that also outlined the successes and challenges of her administration’s first year, Parker — the first woman to serve as the city’s mayor — proposed One Philly Budget 2.0, a $6.7 billion funding plan that continues funding her priorities from the 2025 budget, and takes into consideration the city’s need to prepare of several international events taking place in 2026.
With the help of City Council, the administration has done a lot. But there’s a lot more left to do, Parker said.
“We are never satisfied in this administration, and know that we have a lot more work to do,” she said. “But we made progress in our first year, and City Council has been a full partner in that progress.”
One of the pieces of the budget that reflects the desire for continued progress is in the area of public safety. Although the number of homicides has gone down in the city, the Philadelphia Police will have $872 million to work with. This is slightly less than the $877 million the department got last year.
Of that allocation, $67 million will go toward building a new forensics lab in West Philadelphia. Should Council approve the project, it could open as soon as next year and would replace the current lab, which is too small to meet the Police Department’s needs.
Another priority slated for more funding is Parker’s goal of building 30,000 new housing units. Toward that goal, the budget calls for the city to borrow $800 million to create the Housing Opportunities Made Easy — or H.O.M.E — initiative. Parker will come before Council on March 24 at 10 a.m. to flesh out the program.
Parker has budgeted $300 million for the city-owned recovery house that was built with the $100 million the administration borrowed during last year’s budget cycle. This money would expand programming at the Riverview Wellness Village.
And $100 million has been allocated for the city to prepare for a number of major events scheduled to come to Philadelphia in 2026. In addition to the nation’s 250th birthday, the FIFA World Cup, and Major League Baseball’s All-Star game are coming to town.
While Parker had some ambitious ways proposed to get and keep the city moving forward, paying for it is going to require cooperation between local, state and federal agencies.
State lawmakers were on hand for the address, most notably the Democratic chairs of the House and Senate Appropriations committees, State Rep. Jordan Harris (D-186th Dist.) and State Sen. Vincent Hughes (D-7th Dist.).
But right now, the federal government isn’t quite as reliable as it used to be — something that Parker acknowledged in her speech while also acknowledging the concerns of the city’s immigrant communities.
“I know there is uncertainty in the air right now,” Parker admitted. “People don’t know what to expect from their government, and uncertainty can breed fear. I want the people of Philadelphia and our city employees to hear me: Your city is here to keep you safe and to safeguard your basic rights.”
Toward the goal of shoring up programs with federal funding connections, the budget includes a $95 million fund to make sure that the city can provide the services that people count on.
Due to the possibility of the city’s federal grants being cut off, another aspect of the budget — cutting wage and business taxes — has some concerned.
The cuts, which were recommended as part of the report released by the Tax Reform Commission two weeks ago, would reduce the net income rate of the business income and receipts tax from 5.81% to 5.71% in the 2026 budget and bring the gross receipts tax rate for the BIRT down to 0.141%. If approved, the cuts would cost the city $9.2 million.
Hearings on the 2026 fiscal year budget will begin on March 25 at 10 a.m.
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