Broad Street Brief Special Edition: FY26 City Budget Address Recap
March 17, 2025
March 17, 2025
On Thursday, March 13, Mayor Cherelle Parker delivered her second annual Budget Address to the Philadelphia City Council, unveiling her $6.77 billion FY26 Budget proposal—an approximately $400 million increase over the FY25 budget approved last June. The proposed FY26-30 Five Year Plan and FY26-31 Capital Program include $2.30 billion in new operating investments and $1.47 billion in capital investments over six years.
Her speech noted the success of the FY25 “One Philly Budget” in creating “a safer, cleaner, and greener city, with access to economic opportunity for all,” citing significant reductions in violent crime; the cleaning of more than 67,000 streets, the towing of 11,617 abandoned vehicles, and the cleanup of 17,319 vacant lots; and the opening of 25 extended day and year-round school programs. She also highlighted the City’s strong fiscal health, including a projected $280 million in the Budget Stabilization Reserve Fund and the highest combined credit ratings in decades.
Mayor Parker’s proposed FY26 budget—which she dubbed “One Philly 2.0”—aims to build on the administration’s successes by continuing to invest in these critical areas, as well as preparing for major events in 2026 and reducing business taxes. Read the full transcript of the mayor’s speech here. Below are some of the highlights of the Mayor’s budget proposal.
FY26 budget hearings in the Committee of the Whole are scheduled to begin on Tuesday, March 25 and will conclude in early May. Subsequent negotiations between lawmakers and the administration will aim to finalize budget amendments, with preliminary approval expected in early June—ahead of Council’s last scheduled meeting on June 12 and the end of the current fiscal year.
Mayor Parker proposed lowering the City wage tax and the Business Income & Receipts Tax (BIRT) to make Philadelphia more competitive and create jobs. Proposed changes to the tax structure include:
The total cost of proposed tax reforms through FY30 is estimated by the administration to be $210 million, with approximately $110 million allocated for wage tax reductions and $100 million for BIRT reductions. The proposed budget also includes more than $451 million in operating investments in economic opportunity, including:
Mayor Parker highlighted the recent launch of the administration’s Housing Opportunities Made Easy (HOME) initiative, designed to build or restore 30,000 housing units—an historic and unprecedented investment. The proposed budget includes:
Mayor Parker emphasized the importance of public safety investments, including funding for additional police officers, new equipment, and initiatives to combat violence and improve street safety. The budget includes $746 million in new operating and $289 million in capital funding, including:
Mayor Parker emphasized that significant investments in cleaning and greening initiatives enhance Philadelphians’ overall quality of life. She highlighted the allocation of funds for street cleaning, maintaining vacant lots, and improving parks and recreational facilities, with $65 million in new operating investments and $752 million in capital funding, including:
Mayor Parker emphasized the importance of preparing for the nation’s 250th birthday celebration and other major events that the city will be hosting in 2026 to ensure Philadelphia is “ready to welcome the world.” The budget includes significant funding for special events, partnerships, and safety measures to elevate Philadelphia on the global stage, with a total $100 million proposed allocation, including:
Mayor Parker emphasized the importance of education investments to support the city’s youth, highlighting the expansion of extended day and year-round school programs, adding over 7,000 new slots for educational enrichment.
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March 17, 2025
March 17, 2025
March 17, 2025