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

PHILADELPHIA (KYW Newsradio) — Philadelphia Mayor Cherelle Parker is locked in budget negotiations with City Council, but the two sides remain far apart as the deadline for a deal gets closer.

If City Council is to stay on its current schedule and begin its summer recess next week, it must give preliminary approval to the mayor's budget at Thursday's regular meeting, as dictated by the city charter, so the finished budget can get a first reading and, thus, be ready for a final vote next week.

However, after a day of intense talks, the two sides were so far apart that Council President Kenyatta Johnson sent members home for the night.

The new budget takes effect on July 1, though Parker’s tax proposals are still a sticking point, especially 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.

Sources familiar with negotiations said Parker has given up on her proposed hotel and short-term rental tax increases to pay for homeless services, as well as a delivery tax, but is still fighting for the rideshare tax to address the school district's structural deficit.

The sources said many Council members want to take the rideshare tax off the table and instead send the district the equivalent funding— about $50 million — for one year, and revisit more reliable funding next year. They believe the mayor has no leverage to force the tax through, but the administration believes Council members won’t want to be seen as blocking new funding for schools.

Council is set to reconvene at 9 a.m. Thursday, but it could be another long day of negotiations.