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Philadelphia City presents FY27 budget proposal with taxes to fund schools, housing and transit
Summary
City officials outlined a $6.97 billion operating budget and an $8.2 billion capital program in the mayor's FY27 proposal, and proposed new revenue sources — including a 2% hotel tax, a $0.25 delivery fee and a per-ride rideshare levy — to fund homelessness services, school funding and street repairs.
Philadelphia City Council hosted a community town hall to present the mayor's proposed fiscal year 2027 budget and gather public feedback. Council finance director Helen Lawhead walked residents through the main figures and several new revenue proposals.
Lawhead said the proposed operating budget totals about $6.97 billion and includes roughly $230 million in new spending. "The largest majority of that will go towards public safety at nearly $120,000,000," she said, while other new investments were proposed for economic opportunity and housing. The proposed capital program is about $8.2 billion, with approximately $2.8 billion in new borrowing for long-term projects such as paving and ADA ramps.
The package would fund targeted expansions, including 1,000 additional youth employment slots in the city's career-connected learning programs, investments intended to add 1,000 shelter beds and continued funding for opioid-response services. The five-year plan also includes nearly $900 million for SEPTA over the budget window.
To pay for the proposals, Lawhead described several potential revenue changes. The administration proposes raising the hotel tax by 2 percentage points, an increase Lawhead said would generate about $20 million annually to expand homelessness services. Officials also proposed a delivery fee of $0.25 per order, with exemptions for food, baby products, drugs and medical devices; Lawhead estimated this would raise about $15 million a year. A proposed per-ride rideshare fee aimed at supporting the School District was described as generating tens of millions annually; the transcript had inconsistent figures, and council staff characterized the rideshare proposal as expected to raise roughly $48 million to support the district.
Council members and residents asked how departments would deliver the proposed programs and how the revenue and fee changes would affect residents and businesses. Lawhead and council staff said the council will continue to review departmental capacity and the long-term sustainability of new revenue sources as the council negotiates with the administration.
Council encouraged continued public engagement through the budget survey and additional hearings at City Hall before council votes on any amendments and a final enacted budget.
