PHILADELPHIA (KYW Newsradio) — Philadelphia Mayor Cherelle Parker is proposing a $1 per trip rideshare tax to help the school district out of its budget deficit.
Parker had proposed a 20-cent-a-ride tax for the school district in her budget address just two weeks ago. It would have gone into effect in July 2027. But now that the school district is projecting a $300 million structural deficit, she's proposing a dollar-a-ride tax to start next January.
“It was clear that the Parker administration needed to add additional recurring revenue that the school district could count on,” she said.
Parker said the tax would generate $48 million each year, not enough to instantly close the gap but enough to reduce the serious cuts the school district is facing. Superintendent Tony Watlington was preparing to eliminate 340 positions. He said that with the tax, the number would be reduced to 100.
“This will make a huge difference in ensuring not only can we get our budget balanced, this will help us continue down the road of helping us be the fastest-improving large urban district in the country,” he said.
The boost to the operating budget would not affect the plan to close 18 schools.
Uber said it will pass the tax along to riders and predicts drivers will be hurt.
“We have to fight like heck to make sure the rideshare companies understand all the rides they make money from are on the shoulders of these children and their parents, and they have to be part of the solution,” said Donna Cooper of Children First.
The tax would have to pass City Council.