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Administration presents $6.97 billion 'One Philly, One Future' budget, proposes hotel, delivery and ride‑share revenue changes
Summary
Mayor's team told City Council the proposed $6.97 billion FY2027 operating budget would fund homelessness response, economic mobility and a $1.5 billion capital program; new revenue proposals include an additional hotel tax, a retail delivery tax and a proposed local transportation network company (ride‑share) tax to support the School District.
The administration asked the Philadelphia City Council Committee of the Whole to approve a $6.97 billion fiscal year 2027 operating budget and an accompanying five‑year plan it calls "One Philly, One Future." Tiffany Thurman, chief of staff to Mayor Parker, said the proposal includes $642 million in new operating investments over five years and a six‑year capital program asking for about $1.5 billion in new investments.
Why it matters: The package combines operating commitments with several revenue proposals that the administration says are required to sustain new and existing programs. Thurman said the plan is intended to maintain the city's fiscal foundation while expanding supports for homelessness, economic mobility and public safety.
The administration proposed a mix of new and increased taxes and fees to support priorities. Thurman described an increase to the hotel room tax beginning in FY27 to fund the strategy to end street homelessness, and a retail delivery tax to fund day‑to‑day pothole squads and road improvements. The proposal also includes a local transportation network company (TNC or ride‑share) tax that the administration estimates could generate about $48 million a year dedicated to the School District of Philadelphia.
Budget staff described internal savings and contingency planning. Budget Director Sabrina Maynard told the committee that departments completed exercise scenarios for 1%–2% cuts and in some cases larger reductions; she said personnel vacancies and targeted recurring reductions were among the adjustments already made. "We actually had departments go through and propose 1% and 2% cuts," Maynard said when asked for specifics on savings.
Risk management and reserves: The administration emphasized stress‑testing the five‑year plan for potential federal grant losses and other shocks. Finance staff said the plan proposes re‑establishing a federal funding reserve and growing the budget stabilization reserve to roughly $344 million by FY28 to provide planning time if federal grants decline.
Next steps: Council members pressed for written follow‑up on department‑level savings, a list of underperforming contracts that could be reduced or repurposed, and the formulas used to size contingency and labor reserves. The hearing continued with detailed presentations on the capital program, housing initiatives and agency programs; no vote was taken at the hearing.
