June 13, 2025
PHILADELPHIA CITY COUNCIL PASSES FISCAL YEAR 2026 OPERATING AND CAPITAL BUDGETS DURING JUNE 12 CITY COUNCIL SESSION
Philadelphia City Council members this week approved a $6.84 billion Operating Budget and $6.55 billion Capital Budget for Fiscal Year 2026 (FY 2026) both of which are higher than what Mayor Cherelle L. Parker initially proposed in March of this year.
Bills #250196 (Operating Budget) and #250197 (Capital Budget) were each approved by a 15-1 vote. Minority Leader Kendra Brooks (At-Large), voted no on both bills. Councilmember Nicolas O’Rourke was on official leave of absence from the session and did not vote on any bills or resolutions.
A few hours after the Council session ended, Mayor Parker and City officials joined Council President Kenyatta Johnson (2nd District) and Councilmembers Anthony Phillips (9th District), Quetcy Lozada (7th District), Jamie Gauthier (3rd District), Mike Driscoll (6th District), Jim Harrity (At Large) and Nina Ahmad (At Large) for a press conference in the Mayor’s Reception Room to discuss the new budget.
These critical budget investments align with the City’s strategic priorities ensuring that public resources are directed toward initiatives that promote safer communities, and expand educational and youth opportunities, economic growth, high-quality municipal services, affordable housing, and the successful execution of major upcoming events, among others.
The Operating Budget governs the day-to-day financial operations of the city and embodies an estimate of proposed revenues and expenditures for the fiscal year, while the Capital Budget covers proposed expenditures for things like City buildings, facilities, and specialized equipment. The 2026 Fiscal Year begins on July 1.
The proposed FY 2026 budget also has several new investments championed by City Council members, which include the following:
- Securing an additional $17 million in funding to increase direct grants through the Department of Commerce’s Jumpstart Fund totaling nearly $170 million over five years.
- More than $26 million in additional capital funding for critical infrastructure investments.
- $3.5 million to increase direct grant funding available to support the City’s Community Development Corporations (CDCs).
- Providing an additional $1.55 million in support for the Defender Association of Philadelphia.
- Securing an additional $1.4 million for Mural Arts Philadelphia which will increase the capacity to deliver high-impact programs across various communities throughout Philadelphia.
- Dedicating $1.5 million over three years ($500,000 each year) to support homeless youth services.
- Adding $1.5 million in arts and culture funding.
- Obtaining an additional $2 million for community-based 2026 event activations as the United States commemorates the 250th anniversary of the signing of the Declaration of Independence in 2026
Other items set to receive funding in the FY 2026 budget are as follows:
- $30 million for anti-violence grants.
- $67 million for a new Forensics Science Center to help the City’s law enforcement departments solve crimes.
- $550 million set aside in the Labor Reserve to cover costs for union agreements over the course of the plan.
- $30 million for funding for Vision Zero over six years to increase safety for Philadelphia cyclists, pedestrians and motorists.
- $716 million in operating support for FY 2026 through FY 2030 for SEPTA in addition to $76million in capital support from FY 2026 through FY 2031.
- $41.3 million in new operating investments for education over five years to support various initiatives which is in addition to the grant of more than $280 million the City gives the School District annually.
Council also unanimously approved Bill #250568, which authorizes the sale of $800 million in bonds to pay for Mayor Cherelle Parker’s Housing Opportunities Made Easy (H.O.M.E) initiative which aims to build 30,000 housing units in the city and improve and preserve existing homes by tackling the aging infrastructure that many Philadelphians experience.
“I want to thank my fellow Council members and Mayor Cherelle L. Parker for their due diligence in negotiating and reaching an agreement on the new Fiscal Year 2026 Operating and Capital Budgets and new Housing Opportunities Made Easy Plan” said Council President Kenyatta Johnson (Second District). “This is a balanced budget that reflects the needs of the citizens of Philadelphia.”
“In a city with rich history and resilient people, no one should be forced to sleep on the streets, live in unsafe conditions, or choose between rent and putting food on the table,” he continued. “We must invest in long-term housing solutions – supporting both affordable rental units and pathways to homeownership – so that Philadelphia remains a city where everyone has a place to call home.”
The $800 million borrowing will be both the largest single investment in housing in the history of the city of Philadelphia. The Parker Administration plans to issue a $400 million bond offering this fall and another in late 2027.
Council is a partner with the Parker Administration in this historic effort to provide safe, stable, and affordable housing throughout Philadelphia that change lives for citizens.
The $800 million H.O.M.E. bonds are issued under a service agreement between the City of Philadelphia and the Philadelphia Redevelopment Authority (PRA) which will be the bondholder.
Bill #250568 also solidifies the partnership between Council and Administration by requiring an annual program and budget statement for approval and the creation of a project review team that will have four people – two each selected by both the Mayor and Council – who will look at any changes to annual H.O.ME funding. Council will also be informed of how each Council district will be impacted by H.O.M.E-related spending on a quarterly basis.
The City Controller’s Office, which has fiscal oversight of H.O.M.E. Plan, will conduct reviews of contracts, pre-audit reviews of expenditures, and audit H.O.M.E.-related expenditures. The City Controller will also have the right to observe invoicing vendors during H.O.M.E. construction activities, provided that such observation does not unreasonably interfere with the construction process.
Council also approved legislation to reduce the City’s wage tax and the Business Income and Receipts Tax (BIRT). Bill #250199 was approved by a 15-1 vote with Brooks voting no.
The gross receipts rate – total revenue collected in Philadelphia – will go from 0.1415% to 0.141% next year and has annual cuts until the tax is fully eliminated by 2039. The net income tax – or profits – will go from 5.81% to 5.71% next year, before eventually coming down to 2.8% by 2039.
The City’s wage tax for Philadelphia residents will go from 3.75% to 3.74% next year before reaching 3.7% by 2029. The rate for people who live outside Philadelphia but work in the city will go from 3.44% to 3.43% next year and will fall to 3.39% by 2029.
All the Bills approved during the June 12 City Council session will go to Mayor Parker for her signature or possible veto. The city’s new Operating and Capital Budgets and the $800 million H.O.M.E. are expected to be signed into law any day now.
Budget-related Bills #250195, #250198, #250200, #250201, #250202, #250210, #250528 (Philadelphia Gas Works budget), #250529 (Gas Works Capital Budget 2026-2030) all passed by a vote of 15-1. Brooks was also the only no vote on these bills.
Bill #250211 (increasing Realty Transfer Tax) was approved by a 12-4 vote. The no votes were Councilmembers Katherine Gilmore Richardson (At-Large), Jeffery Young, Jr. (5th District), Brooks and Brian O‘Neill (10th District).
Bill #250212 (Development Impact Tax) was approved by a 14-2 vote. The only no votes were Councilmembers Mike Driscoll (6th District) and Brooks.
THE FINAL SESSION OF CITY COUNCIL BEFORE THE START OF SUMMER RECESS WAS BUSY AND LONG
Philadelphia City Council approved nearly 60 bills and 20 resolutions this week during the June 12 Council session, the final session before Council started its summer recess. The Council sessions lasted nearly four hours, one of the longest Council sessions so far this year.
Due to the number of bills and resolutions approved on June 12, the Weekly Report will just list the bill/resolution number and the name of the sponsor.
For a complete rundown of all bills and resolutions either approved by or currently before Council, go to City Council’s Legislative Information Center.
BILLS APPROVED:
#250291 (introduced by Councilmember Jamie Gauthier, 3rd District); #250293 (O’Neill, 10th District); #250334 (Councilmember Cindy Bass, 8th District); #250431 (Young, 5th District); #250432 (Young); 250436-A (Councilmember Mark Squilla, 1st District); #250523 (Gauthier for Council President Johnson); #250524 (Gauthier for Council President Johnson); #250525 (Gauthier for Council President Johnson); #241024 (Gilmore Richardson for Council President Johnson); #250103 (Squilla for Council President Johnson); #250174 (Gauthier); #250332 (Squilla for Council President Johnson); #250566 (Gauthier for Council President Johnson); #250567 (Gilmore Richardson for Council President Johnson); #250569 (Squilla); #250570 (Squilla); #250571 (Gilmore Richardson); #250483 (Gilmore Richardson for Council President Johnson); 250484-A (Bass); #250526 (Gilmore Richardson for Councilmember Quetcy Lozada, 7th District); #250537 (Bass); 250538 (Bass); #250328 (Lozada); #250384 (Bass); #250425 (Councilmember Curtis Jones, Jr., 4th District); #250427 (Lozada); #250430 (Young); #250437 (Squilla); #250439 (Squilla); #250488 (Gauthier); #250489 (Gauthier); #250490 (Gauthier); #250494 (Young); #250532 (Young); #250535 (O’Neill); #250536 (Squilla); #240671 (Bass); #241082 (Young); #250379 (O’Neill); #241057 (Jones, Jr.); #250331 (Councilmember Nicolas O’Rourke) and #250213-A (Councilmember Nina Ahmad, At-Large).
Council also approved ##250044-A (security deposits between tenants and landlords) by a vote of 13-3. The bill was introduced by Councilmember Rue Landau (At-Large) and the only no votes were from Councilmembers Anthony Phillips (9th District), Jimmy Harrity (At-Large) and Young.
Council President Johnson congratulated Councilmember Landau on the passage of Bill #250044-A and Councilmember Ahmad on the passage of Bill #250213-A, a vaping penalty increase bill.
RESOLUTIONS APPROVED:
#250539 (Gilmore Richardson for Council President Johnson); #250609 (Gauthier); #250617 (Lozada); #250618 (Young); #250619 (Young); #250620 (Young); #250621 (Young); #250629 (Driscoll for Council President Johnson); #250630 (Driscoll for Council President Johnson); #250631 (Driscoll for Council President Johnson); #250634 (Squilla), #250637 (Gauthier); #250655 (Gilmore Richardson for Council President Johnson); #250657 (Councilmember Isaiah Thomas, At-Large, for Council President Johnson); #250659 (Landau); #250660 (Landau); #250662 (Young); #250665 (Squilla); #250666 (Bass); and #250667 (Ahmad for Council President Johnson).
BILLS INTRODUCED:
A total of 11 bills were introduced at the June 12 Council session. They are Bills #256644, #250645, #250646, #250647, #250648, #250649, #250650, #250651, #250652, #250653 and #250654.
Among the highlighted bills are:
- Bill # 250646, introduced by Councilmember Isaiah Thomas (At-Large), will amend Title 9 of The Philadelphia Code, entitled “Regulation of Businesses, Trades and Profession,” by adding a new chapter entitled “Minimum Training For Security Officers.” Service Employees International Union supports this bill.
- Bill # 250649, introduced by Councilmember Young, 5th District, that would amend Section 12-701 of The Philadelphia Code, entitled “Designation of Bicycle Lanes,” to authorize a bicycle lane and removal of a travel lane around City Hall.
- Bill # 250650, introduced by Councilmember Driscoll, 6th District, for Council President Johnson, would provide for the submission to the qualified electors of the City of Philadelphia of an amendment to Article VIII, Chapter 5 of the Philadelphia Home Rule Charter, entitled “Referenda Approved by the Voters,” by adding a new section providing that the citizens of Philadelphia call upon the Pennsylvania General Assembly to provide sustainable and consistent funding to mass transit throughout the Commonwealth, including to SEPTA; fixing the date of a special election for such purpose; prescribing the form of ballot question to be voted on; and authorizing the appropriate officers to publish notice and to make arrangements for the special election.
- Bill #250651, introduced by Driscoll for Council President Johnson, would amend Title 19 (“Finance, Taxes and Collections”) of The Philadelphia Code to add a new chapter creating the Philadelphia Retirement Savings Program as an automated savings program for certain employees in the City of Philadelphia, to establish the Philadelphia Retirement Savings Board, and to establish the Retirement Savings Administrative Fund.
All the bills introduced will be assigned to a committee for a hearing, which is not expected to happen until the fall.
OTHER COUNCIL ACTIVITIES THIS WEEK
Council’s Joint Committees on Labor and Civil Service & Parks, Recreation, and Cultural Affairs held an informational hearing on June 10 on Resolution #250397 that investigated the City of Philadelphia’s enforcement of the city’s Healthy Outdoor Public Spaces (HOPS) Law and the risks that exposure to synthetic pesticides pose to the public and City employees. The Resolution was sponsored by Councilmember Jim Harrity (At-Large).
The 2020 law forbids chemical use in all city-owned playgrounds, parks, trails and recreation centers. The law also requires the city’s Department of Parks and Recreation to document the usage of any pesticide and report back annually to City Council.
Former Mayor Jim Kenney refused to sign the bill back in 2020, so the law took effect without his signature.
Parks and Recreation Commissioner Sue Slawson said at the hearing that the department has tried to use natural herbicides and even goats to tackle weeds, but that so far nothing has been successful. Researchers say weed killers can harm the environment and pose potential human health risks including cancer. Council and the Recreation Department will review the issue again this fall.
Also, Council’s Rules Committee held a hearing on June 12 on Bill #250333 that would amending Title 14 Zoning Code of The Philadelphia Code, Sections 14-409 entitled “SP-CIV, Civic, Educational, and Medical (Special Purpose) District,” and amending Title 14-602 entitled “Use Tables,” by allowing Religious Assembly uses in certain Special Purpose districts. The bill is sponsored by Councilmember Mark Squilla (1st District).
COUNCILMEMBERS AND STAFF GOT TO SEE THE PHILADELPHIA EAGLES TWO VINCE LOMBARDI TROPHIES THIS WEEK
Philadelphia City Councilmembers finally got the chance this week to present Resolution #250105 to Eagles President to Don Smolenski congratulating the team for winning Super Bowl LIX (59) against the Kansas City Chiefs on February 9.
The Eagles have had a busy off season since winning the Super Bowl and this week was the best time to present the resolution. The Eagles also brought to the team’s two Super Bowl Championship trophies into chambers so Councilmembers and city employees could take photos with them.
The Resolution was sponsored by Council President Johnson. The Eagles offices and Lincoln Financial Field are in Johnson’s Second Council District. The Eagles first preseason game will be on August 7, and the first regular season game (and home opener) will be on September 4 against the Dallas Cowboys.
ONE YEAR AWAY FROM THE FIFA 2026 WORLD CUP GAMES COMING TO PHILADELPHIA
City officials this week celebrated the one-year mark from the start of the 2026 FIFA World Cup by unveiling a countdown clock in Dilworth Park.
The clock is located near the corner of 15th and John F. Kennedy Boulvard, near the Dilworth Park Café and the digital clock is counting down to midnight on July 11, 2026, the day of the tournament’s opening match in Mexico City and opening day for the Philadelphia fanfest location at Lemon Hill in Fairmount Park. The clock will be on public display for the entire year.
Philadelphia’s Lincoln Financial Field will host six games in 2026, including a July Fourth round-of-16 match coinciding with the country’s 250th Birthday celebration.
For more information on Philadelphia Soccer 2026, go to phillyfwc26.com
COUNCIL PRESIDENT KENYATTA JOHNSON HONORED FATHERS THIS WEEK AT CITY HALL
Father’s Day will be celebrated in the United States on Sunday, June 15. It is a day set aside for honoring one’s father, as well as fatherhood, paternal bonds, and the influence of fathers in society. The day is held on various dates across the world, and different regions maintain their own traditions of honoring fatherhood.
Earlier this week, Philadelphia City Council President Kenyatta Johnson honored more than 40 fathers across a variety of industries including education, business, real estate, community organizing, and advocacy work, with citations and luncheon inside the City Council Caucus Room at Philadelphia City Hall. Close to 100 guests attended
Ryan N. Boyer, the first African American Business Manager for Philadelphia Building and Construction Trades Council, delivered the keynote address to motivate and inspire honorees.
Council President Johnson, a devoted family and father of two young boys, understands the importance of “giving men their flowers” and have them recognized for their achievements.
City Council wishes everyone a happy Father’s Day.
THE NEXT CITY COUNCIL SESSION WILL BE ON THURSDAY, SEPTEMBER 11
City Council is now on summer recess from holding regular Thursday Council sessions. Council offices remain open Monday through Friday during normal business hours for constituent service requests.
The next Regular Stated City Council meeting is scheduled for Thursday, September 11 at 10 a.m. Eastern Time at Philadelphia City Council Chambers, Room 400 (Fourth Floor), Philadelphia City Hall. Council is scheduled to have 11 Stated Meetings between September to December.
Tune in live on September 11 by watching Xfinity Channel 64 and Fios Channel 40 if you have cable TV in Philadelphia, stream online at www.PHLCouncil.com/watch or listen to WURD Radio (900 AM/96.1 FM) from 10 a.m. to 1 p.m.
