340 school-based job cuts "off the table" as Philadelphia Mayor Cherelle Parker seeks long-term funding

Nearly a week after City Council rejected Philadelphia Mayor Cherelle Parker's proposed ride-hailing tax, she announced a plan Wednesday to preserve 340 school-based positions that had been slated to be eliminated under the School District of Philadelphia's proposed budget.

Parker said the district faces a $300 million deficit because of federal COVID-19 relief funds that expired in September 2024. The mayor had proposed filling that gap with what she described as predictable, recurring revenue through taxes on ride-hailing services, hotels and short-term rentals.

After City Council preliminarily approved Parker's $7.1 billion budget without the proposed taxes, City Council agreed to provide the district with a one-time $48 million infusion. Initially, Superintendent Tony Watlington said the $48 million would not be enough to preserve those jobs, according to a letter obtained by CBS News Philadelphia. That seems to have changed.

On Wednesday, Parker and City Council President Kenyatta Johnson announced an agreement to identify a locally generated, recurring revenue source that would provide the district with $50 million annually over the next five years, preserving 340 school-based roles.

"The 340 school-based cuts are off the table," Watlington said.

City officials said the people in the positions that were slated to be eliminated would have been reassigned to other vacant roles within the district.

The city has already committed to providing the funding for the upcoming fiscal year, which runs through June 30, 2027. Officials said they will work to identify a predictable, recurring revenue source before the next budget.

If a new revenue stream is not secured by next year, officials said the city could draw from $216 million in potential savings identified over the next five years as a backup plan. 

City Council is expected to give the budget final approval on Thursday.

The Philadelphia Federation of Teachers is expected to thank the mayor during a news conference Thursday morning.

Parker also said during Wednesday's press conference that she, Johnson and other officials also plan to ask lawmakers in Harrisburg for more state money for the school district, including to modernize some buildings.

This story will be updated.