Philly Mayor Parker’s $6.7B budget - by the numbers

Philadelphia Mayor Cherelle Parker’s second budget proposal – a $6.7 billion spending plan – is both a continuation of first-year promises and a step toward tax cuts that the mayor hopes will spur investment and growth throughout the City of Brotherly Love and Sisterly Affection. 

Parker’s spending plan, which was transmitted to City Council on Thursday, includes a small cut to the city wage tax and major changes to the business income and receipts tax. And on top of investments in public and street safety, the plan calls for a $95 million reserve fund to protect the city and its partner organizations against the loss of federal grants. State and local officials from in and around Philadelphia – including Republican Attorney General Dave Sunday – were in attendance for Parker’s budget speech. 

City Council will host 13 formal hearings and three public comment sessions for the fiscal year 2026 budget, which must be agreed upon by the end of the fiscal year on June 30. Upon final approval, the budget will take effect July 1. Here are some key figures:

Housing and homelessness initiatives

• $800 million for a major housing initiative, including two $400 million bond issuances to support new and expanded housing programs
• $300 million investment over five years to support the construction and operation of the city-run drug addiction recovery house in Northeast Philadelphia
• $100 million on a new drug recovery center in Holmesburg
• $75 million in capital funding to continue construction of the Northeast Philly facility
• $11 million investment in the Philadelphia Office of Planning and Development over five years to add 32 staff members

Tax reforms

• 50% decrease in the Business, Income and Receipts Tax rate by 2039
• 5.71% net income tax rate, down from 5.81%
• 3.578% real estate transfer tax rate, up from 3.278%
• 0.141% gross receipts tax rate, down from 0.1415%

Streets, public safety and 2026 preparedness

• $25 million in grants to grassroots organizations working to combat violence
• $100 million investment over the next year to support tourism, police and beautification efforts ahead of 2026 events
• $50 million for street repaving projects, with $5 million for street and traffic-calming upgrades
• $67 million increase over five years to cover costs of a new crime lab
• $400,000 investment in new electric bikes for police officers
• $350,000 investment in police recruitment efforts