Philadelphia City Council approves budget for FY 2027, Mayor Parker to sign bills into law

Philadelphia City Council gave final approval to the city's operating budget for fiscal year 2027, one week after rejecting a controversial rideshare tax proposed by Mayor Cherelle Parker.

The $7.1 billion Operating Budget and $6.98 billion Capital Budget were passed during the council's June 11 session.

In a statement, Council President Kenyatta Johnson said the approved budget "reflects a shared commitment to investing in our neighborhoods, expanding housing opportunities, strengthening city services and building a stronger future for residents across the city," and "positions Philadelphia to continue making meaningful progress while addressing the needs of working families and communities in every corner of our city."

Parker is scheduled to sign FY 2027 budget bills into law Thursday afternoon starting at 3:30 p.m. CBS News Philadelphia will carry that signing live in the video player above and on our YouTube channel.

On June 4, City Council gave preliminary approval to a version of Parker's budget, but rejected a proposed $1-per-ride tax on ride-hailing services like Uber and Lyft following weeks of debate and public outcry. Councilmembers also rejected proposed taxes on hotels and short-term rentals like Airbnb.

"Our constituents told city councilmembers they do not want another tax," Johnson said. "We felt, as a body, that we do not want to continue placing a heavy burden on taxpayers while we're dealing with the issue of affordability here in the city of Philadelphia."

The rideshare tax would have supported the School District of Philadelphia, which currently faces a $300 million deficit.

There was looming concern that without the tax, the district would be forced to eliminate more than 300 positions.

Council approved $48 million for the district Thursday, which school officials initially said wouldn't be enough to save those jobs. However, Parker, Johnson, Superintendent Dr. Tony Watlington and School Board President Reginald Streater reached a deal to take those cuts "off the table" prior to council's final budget approval.

According to Johnson, the operating budget does not include a property tax increase, though new assessments by the Office of Property Assessments could indirectly raise property taxes.