[VT Philadelphia, PA] March 13, 2025, Philadelphia Mayor Cherelle L. Parker submitted her proposed Fiscal Year 2026 budget to the City Council today, totaling $6.7 billion, an increase from last year’s $6.37 billion budget. The mayor dubbed it the “One Philly 2.0 Budget,” emphasizing investments in public safety, housing, education, and city cleanliness.
During her address, Mayor Parker reported that the city’s fiscal health remains strong, with the pension fund reaching a 65 percent funding level—the highest in decades. This progress contributed to S&P Global Ratings upgrading Philadelphia to its highest combined credit rating in decades.
“The state of the City’s fiscal health remains strong,” Parker stated. “We continue to make contributions to the Budget Stabilization Reserve Fund. It will have $280 million by the end of the Proposed Five Year Plan.”
Public safety remains the administration’s top priority. The mayor highlighted a 37 percent reduction in homicides and a 36 percent decrease in shootings over the past year. The FY2026 budget includes $2.7 million to expand the Neighborhood Wellness Court and $2.8 million for Police Assisted Diversion programs. Additionally, the five-year plan allocates $67 million for a new Police Forensics Lab to be located at 4101 Market Street in West Philadelphia.
In a significant housing initiative, Mayor Parker announced the Housing Opportunities Made Easy (H.O.M.E.) program, promising to create or preserve 30,000 housing units during her term. To fund this effort, the administration will issue $800 million in bonds over the five-year plan, with $400 million to be issued in FY2026. A special City Council session on housing is scheduled for March 24 to present the complete housing plan.
“Philadelphians need more housing, and they need it now,” Parker emphasized. “I want shovels in the ground! I want houses rehabbed and restored!”
The budget also expands the Extended Day/Extended Year program to 15 additional schools, bringing the total to 40 schools. The mayor announced a millage shift in the Real Estate Tax for FY2030 that will provide an additional $12 million annually earmarked for teacher salaries.
For city cleanliness initiatives, the administration is implementing a new Ten-Point Greening Plan that includes tree planting, vacant lot cleaning, and park improvements. An Anti-Litter Task Force will coordinate efforts to enforce violations and target illegal dumping with increased fines and surveillance cameras.
The proposed five-year plan includes $550 million in Labor Reserve Funds, which the mayor described as “a historic and unprecedented figure,” committing to reach multi-year agreements with all four municipal unions this year.
