PHILADELPHIA (KYW Newsradio) — Philadelphia Mayor Cherelle Parker is set to propose a nearly $7 billion budget to City Council on Thursday that calls for a variety of new taxes but no increase in property taxes, and continued decreases in the wage tax.
In her first two budgets, Parker invested in her promise of a cleaner, greener, safer city. This year, it appears she’s going all in on economic opportunity for all, proposing a new Economic Mobility Cabinet, plus money for workforce development and youth employment, according to city officials who were briefed on the budget.
The mayor’s spending plan also increases funding for the Philadelphia School District and SEPTA, creates a new program for keeping potholes filled, and includes a continued investment in clean, green and public safety programs.
To pay for it, the mayor proposes spending down this year’s unusually high fund balance — money set aside for emergencies — and a variety of new revenue sources, such as a 2% increase in the hotel tax, a 25-cent-per-order retail delivery tax, and higher fees for zoning hearings, commercial trash and some other city services.
There’s also a new proposed revenue for the school district: a 20-cent-per-ride fee on ride shares, estimated to raise about $10 million, and a new formula for the use and occupancy tax on cell towers, which would bring in an additional $2 million.
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Property tax rates would stay the same, though new assessments will likely result in higher tax bills. The mayor is also continuing the slow reduction in the wage tax.
The housing crisis is still a priority, with money for debt service on the bonds for the her HOME initiative to produce 30,000 units of affordable housing and 1,000 new shelter beds.
In a social media post, the mayor said her budget is based on what she hears from residents.
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