Philadelphia City Council Reviews $6.7 Billion Budget Proposal

Philadelphia City Council discussing the Fiscal Year 2026 budget proposal.

News Summary

Philadelphia City Council is actively reviewing Mayor Cherelle L. Parker’s proposed $6.7 billion Fiscal Year 2026 budget. Key topics include a potential tax exemption elimination affecting 75,000 local businesses and significant budget challenges for SEPTA, with proposed fare increases and service cuts. The community is encouraged to participate in upcoming comment sessions to address their concerns, leading to a finalized budget by June 30.

Philadelphia City Council Deliberates on Budget Proposal

Philadelphia has been buzzing with activity as the City Council delves into Mayor Cherelle L. Parker’s proposed Fiscal Year 2026 budget, which stands at a hefty $6.7 billion. With no Stated meeting on April 17 due to the Easter holiday, the week of April 15 to April 16, 2025, was packed with bustling hearings focusing on the intricacies of this ambitious financial plan.

Busy Budget Hearings

During this fourth week of budget hearings, the City’s Offices of Planning and Development, Commerce, Public Property, and Fleet Services presented their plans and proposals. A pressing concern raised by City Council members was a proposal to eliminate a tax exemption for small businesses on the first $100,000 of income, which could impact around 75,000 local businesses.

To mitigate the effects on small businesses, Commerce Director Alba Martinez proposed a $30 million fund directed toward education and tax filing assistance. However, it was shared that out of those 75,000 businesses potentially affected by the tax changes, only 11,000 would qualify for this much-needed financial support. The average tax bill expected for small businesses is estimated to increase to around $300.

Impacts on Public Services

August 24, with a staggering 21% fare increase slated to take effect on September 1.

SEPTA is grappling with a structural deficit of around $213 million. This has led Council President Kenyatta Johnson to urge SEPTA officials to engage in fruitful discussions with state officials regarding funding possibilities. Notably, Mayor Parker’s spending plan allocates $135 million in operating support for SEPTA, which is a modest increase of $2 million compared to the previous fiscal year. Furthermore, Governor Josh Shapiro has proposed over $300 million in state funding for mass transit in his Fiscal Year 2026 budget, which includes $168 million specifically for SEPTA.

Engaging the Community

As part of the budget process, Philadelphia City Council is encouraging public input with comment sessions scheduled for April 30 and on May 13-14. This forum allows people to voice their thoughts and concerns about the proposed budget, helping shape the financial direction of the city. The City Council has until June 30 to finalize the budget before Fiscal Year 2026 kicks off on July 1.

The City Council is also actively engaging with community members. On April 14, the second Neighborhood Budget Town Hall saw an enthusiastic turnout of around 200 people, showcasing the public’s interest in local fiscal matters. Meanwhile, the Council’s Committee on Legislative Oversight has been busy assessing the preparations for significant events in 2026, such as the FIFA World Cup and celebrations for America’s 250th anniversary.

Upcoming Initiatives

In addition to budget discussions, the Council’s Rules Committee has been voting on several critical bills, including proposals aimed at repealing previous legislation for a potential Philadelphia 76ers arena in Center City—a subject that has been garnering attention from residents. Moreover, Council President Kenyatta Johnson is hosting a job fair set for April 25 at Vare Recreation Center, promising to connect job seekers, regardless of age, with nearly 40 employers.

Mark your calendars! The next Regular Stated City Council meeting is coming up on April 24, 2025, at 10 a.m. in Philadelphia City Council Chambers. As financial discussions continue, Philadelphia residents have their eyes peeled on how these decisions will shape their city.