[VT Philadelphia, PA] March 13, 2025, Philadelphia Mayor Cherelle L. Parker has presented a $6.77 billion budget proposal for Fiscal Year 2026 to the City Council, along with a five-year plan that outlines significant investments in public safety, cleaning and greening initiatives, housing, workforce development, tax reform, and wellness programs.
The “One Philly 2.0” budget proposes $2.30 billion in new operating investments through FY30, including debt service on $800 million in new borrowing for the administration’s Housing Opportunities Made Easy (H.O.M.E.) Initiative to build or restore 30,000 housing units. The plan also includes $1.47 billion in capital investments over six years.
“Philadelphians deserve a budget that propels our City forward. This budget demonstrates my Administration’s ongoing, responsible overseeing of our City’s finances, while we continue to make Philadelphia the Safest, Cleanest, Greenest Big City in the Nation with Access to Economic Opportunity for All,” Mayor Parker stated.
The budget is being proposed during a period of financial stability for Philadelphia, though the city faces heightened risks. The five-year plan includes a Budget Stabilization Reserve Fund of $280 million, improved bond ratings, and a pension fund that has reached a 65 percent funding level—the highest in decades. The plan also includes a $95 million reserve for federal funding.
For housing, the proposed budget allocates $800 million for the H.O.M.E. Initiative, $11 million over five years for 32 new positions and consultant support, expanded capacity for Licenses and Inspections, and $300,000 annually for tangled title investments.
Public safety investments total $746 million in new operating funds and $289 million in capital funding, including $67 million for a new Forensics Lab, expansion of Police Assisted Diversion, upgrades to medic units, and various technology improvements.
The clean and green initiatives receive $65 million in new operating investments and over $752 million in capital funding, supporting parks maintenance, sanitation efforts, environmental justice initiatives, and public transportation.
The budget also proposes $451 million in economic opportunity investments, including $210 million in business and wage tax reductions and $150 million over five years for a new Jumpstart Business Program.
Additionally, the plan includes $100 million in general fund investments for preparations related to special events in 2026, covering beautification projects, infrastructure improvements, and increased support services.
The Parker Administration will host town halls across the city to engage residents about the budget’s impact on their communities.
