Philadelphia City Council continues to debate Mayor Parker's budget, ride-hailing tax as deadline looms

Negotiations over Philadelphia Mayor Cherelle Parker's nearly $7 billion budget proposal are coming to a head at City Hall. Lawmakers and the mayor's office are still in talks over key pieces — including the controversial tax on rides booked with apps like Uber and Lyft — with the deadline of council's last session looming.

Council President Kenyatta Johnson said members have not reached a deal on a budget yet, and council has recessed until 9 a.m. Thursday.

Lawmakers said that as of Wednesday evening, the biggest battles are over a slate of taxes, including the ride-hailing tax. Council sources told CBS News Philadelphia that right now, none of the taxes — the ride-hailing tax and the delivery tax to fund a pothole squad — have the nine votes needed to pass.

Parker and her team were making the rounds Wednesday afternoon. We caught her on the fourth floor, but she did not comment on the talks. 

The hard conversations on Wednesday centered on those two taxes. Councilmembers said Parker's proposed increase in the hotel tax is out. That would need state approval, which appears unlikely.

The most divisive issue, however, has been the proposed $1-per-ride tax on ride-hailing services, which would prevent the school district from having to move 340 teachers and support staff to new schools. Some lawmakers called it into question after the school board approved the controversial facilities plan. 

Several councilmembers said they were already looking for solutions beyond that tax.

"I'm against the taxes for the rideshare and the delivery taxes. But we're still trying to figure out how to fill the gaps. So it's gonna be a long day of negotiation, I think," Councilmember Mike Driscoll said.

"Me personally, I've been exploring every option possible to put us in a position to find funding for public education without asking average, everyday constituents to pay a little bit, especially with the affordability crisis we're facing right now," Councilmember Isaiah Thomas said.

Most councilmembers say they still want to pass funding for the school district. They can look to approve the ride-hailing tax at a lower rate or give that money from the surplus.

City Council is determined to wrap up this budget by June 11. That means they would have to pass a preliminary budget Thursday that can be approved next week. They can add extra sessions, but that appears unlikely.