Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the City Budget topic
No spam. Unsubscribe anytime.
Philadelphia council budget presentation highlights $2.3B operating plan, business and wage tax changes
Summary
Council budget staff outlined the mayor’s FY2026 proposal, including $2.3 billion in operating spending over five years, proposed reductions to business and wage taxes, and an $800 million housing initiative labeled “HOME.” Council members said they will hear community feedback before negotiating the final budget.
City Council budget staff on Tuesday laid out the broad contours of the mayor’s proposed fiscal 2026 budget, emphasizing multi‑year operating and capital commitments and a package of tax changes aimed at economic competitiveness and housing funding.
Helen Lawhead, budget director for City Council, described the proposal as a starting point for council review and community input. “Over the next 5 years, this proposal includes $2,300,000,000 in operating spending,” Lawhead said during a presentation, and she added the plan includes $1,470,000,000 in new capital investments.
The proposal includes multiple tax changes. Lawhead said the fiscal plan would reduce the business income and receipts tax (BIRT/BERT) and cut the wage tax for residents and nonresidents who work in the city. To respond to a legal challenge to the city’s small‑business exemption, the presentation said the plan would provide $30,000,000 per year (about $150,000,000 over five years) to support businesses that lose the prior $100,000 exemption.
The proposal also ties tax policy to the city’s housing goals. Lawhead said the administration proposes eliminating the construction impact tax to lower development costs and increasing the real‑estate transfer tax and the document‑recording fee to help fund housing programs.
Councilmember Jamie Gauthier framed the budget as more than numbers. “A budget is a moral document,” Gauthier said, urging residents to weigh priorities in the public conversation.
Lawhead listed several priority areas in the draft. The operating proposal includes about $356,000,000 in new spending in FY2026 with the largest share for public safety; the capital plan projects $337,200,000 in new spending focused on public safety and economic development. The presentation also referenced targeted investments: a five‑year, $67,000,000 allocation for a new forensic science center; $25,000,000 for anti‑violence grants; and a proposed $800,000,000 program referred to in the presentation as “HOME” (the Housing Opportunities Made Easy program) with associated staff for Planning and Development.
Council leaders emphasized that the document presented at the town hall is a proposal and that council will negotiate changes before adoption. Residents at the meeting asked for clarity about how proposed tax changes would affect schools, small businesses and neighborhood investments.
