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What to know about Philadelphia’s budget as the deadline looms

There are still a number of sticking points, mostly surrounding mayor’s tax proposals

What to know about Philadelphia’s budget as the deadline looms

Mayor Cherelle Parker (center) speaks at a press conference for Philadelphia's Fourth of July celebrations, May 21, 2026.

Quinton Davis/City of Philadelphia

PHILADELPHIA (KYW Newsradio) — Philadelphia Mayor Cherelle Parker is locked in budget negotiations with City Council, as the deadline for a final budget is hours away.

Under the city charter, City Council — sitting as the committee of the whole — must approve a budget before Thursday’s regular meeting so the finished budget can get a first reading and, thus, be ready for a final vote next week, which is the last scheduled meeting before summer recess.


The new budget takes effect on July 1.

However, there are still a number of sticking points, mostly surrounding Parker’s tax proposals. Chief among them is a dollar-per-ride tax on ride-share companies that would be used to fund the school district. Without the extra income, the district said it will cut hundreds of positions.

There’s pressure from Uber and Lyft and some of their riders, who claim the tax will hurt low-income Philadelphians. But there’s also pressure from parents and education advocates to pass the tax and help the school district avoid budget cuts.

There are several versions of what a compromise would look like, but no decision yet.

Council has turned down, at least temporarily, the mayor’s proposed hotel and short-term rental tax increases to pay for homeless services. That would need state approval, which is not guaranteed. That puts City Council members in the awkward position of potentially voting for a tax that never passes. Council President Kenyatta Johnson said that tax is on hold.

There are still a number of sticking points, mostly surrounding mayor’s tax proposals