PHILADELPHIA (
WPHL) — Philadelphia Mayor Cherelle Parker held her second budget address on Thursday, sharing her $6.77 billion 2026 budget and Proposed Five-Year Plan. Her
first budget proposal was $6.29 billion.
Mayor Parker’s targeted investments include public safety, cleaning, housing, “historic” tax reform, and more.
Fiscal Health
According to the Mayor’s Office, currently Philadelphia’s finances “remain stable but face heightened risks.” The city says it continues to make contributions to the Budget Stabilization Reserve Fund, which it claims will have $280 million by the end of the Proposed Five-Year Plan.
S&P Global Ratings upgraded the City of Philadelphia to its highest combined credit ratings, ‘A+’, which the city says is the highest in decades. This upgrade follows Fitch’s upgrade in June 2024.
The City’s Pension Fund reached a 65% funding level, also the highest in decades, according to the city. The Pension Fund is forecasted to reach 100% funding by Fiscal Year 2033.
A $95 million reserve for federal funding is designed to give the city “time to react to changes in federal policy as they come.”
Housing
The Proposed Five-Year plan includes borrowing $800 million for investment in the Housing Opportunities Made Easy (H.O.M.E.) Initiative.
The proposal also includes $11 million over five years for 32 new positions and consultant support to aid implementation of the plan, expanding Licenses and Inspections (L&I), and $300,000 a year in new expanded title investments.
Public Safety
The budget proposes critical continued investments, in addition to $746 million in new operating and $289 million in capital funding for:
- Police Department:
- An additional $67 million over the Plan for the new Forensics Lab in West Philadelphia
- $2.8 million investment to expand the Police Assisted Diversion unit as a pilot
- $400,000 over the Plan to purchase new electric police bikes
- Fire Department:
- $2.5 million in proposed funding over the Plan to upgrade medic units to a higher service level
- $300,000 FEMA Assistance to Firefighters grant match
- $1.4 million for new technology costs
- Department of Prisons:
- $4.5 million annually for the Facility Maintenance contract
- $750,000 proposed annually for the Philadelphia Prison Violence Prevention Program
- $4.9 million over five years to outfit Correctional Officers with body-worn cameras (front-loaded with $2 million to purchase cameras in FY25)
- Office of Public Safety:
- $25,000,000 in FY26 for anti-violence grants
- $740,000 in victim relocation funding
- $600,000 for funeral expense assistance.
- Vision Zero: $5 million in FY26 and $30 million through FY31 for the two Vision Zero lines in the capital budget, plus $5 million for concrete barriers on Spruce and Pine Streets and a new line striping crew in the Streets Department ($5.5 million over five years)
- Managing Director’s Office:
- $4.6 million over five years to ACCT Philly for contracted increases, insurance, supplies, and vet staff
- $500,000 in annual funding proposed to support the Domestic Violence Hotline
- $437,000 annually to continue the Supervised Child Visitation Program
- Department of Public Health:
- $3.4 million over five years to backfill expiring antiviolence grants
- $100,000 annual increase to the indigent burials line (under Finance)
- Office of Homeless Services: $1.3 million for enhanced Code Blue operations over $1.25 million annually for 21st-century wage requirements (to be kept in a reserve maintained by Finance until needed)
A Cleaner & Greener Philadelphia
The Proposed Plan includes $65 million in new operating investments and over $752 million in capital funding to make the City cleaner and greener, which includes:
- Department of Commerce: $1.5 million annually to DRWC to maintain land under I-95
- Managing Director’s Office: $2.7 million over five years to purchase and maintain new planters
- Parks & Recreation:
- $1 million annually for additional funding for turf and landscape maintenance
- $250,000 annually for chlorine
- $160,000 annually for supplies (trash bags, supplies, safety equipment)
- $130,000 to address short-dumping (illegal dumping)
- $500,000 in new youth sports funding, including YMCA camp, in FY26
- Department of Sanitation:
- $750,000 annually for Clean & Green Initiatives
- $326,000 for a trash and recycling cart container pilot
- Office of Sustainability:
- $75,000 annually for an Environmental Justice position
- $200,000 in FY26 for Eastwick Flood Resilience Strategy planning support
- $175,000 in FY26 for Clean Water Act Compliance planning
- Philadelphia Energy Authority: $250,000 annually in additional operating support
- Pennsylvania Horticultural Society: $1.7 million annually, $8.5 million over five years to sustain year-round cleaning of vacant lots
- SEPTA: $716 million in operating support to SEPTA in FY26 through FY30 in addition to $7 million in capital support from FY26 through FY31
Wellness
The budget includes investments in the “wellness ecosystem” for recovery-based housing, clinical services, and medical care for those with histories of substance use disorder, mental or behavioral health, or homelessness:
- Wellness Ecosystem: $216 million in operating funds from FY26-FY30 for the wellness ecosystem
- Additional new opioid-related investments (via opioid funds):
- $500,000 annually for outreach to address overdose disparities
- $855,000 in both FY26 and FY27 for wound care
- $4.3 million annually for Medication Assisted Treatment (MAT) at the Prisons
- $2.8 million annually to continue 175 homeless services beds
Economic Opportunity & Tax Reform
More than $451 million in operating budget investments are being proposed for:
- Business and Wage Tax:
- $210 million in historic Business and Wage tax investments during the Proposed Plan to “make Philadelphia more competitive and to create jobs.”
- The Parker Administration is also proposing to continue reductions until the gross receipts portion of the Business Income and Receipts Tax is eliminated, and the net income portion of that tax in cut by more than 50%.
- Creative Philadelphia: $250,000 in FY26 and $50,000 from FY27 on for nighttime economy programming
- Department of Commerce:
- $30 million annually, $150 million over five years for the new Jumpstart Business Program
- $150,000 for a tax incentive study
Workforce
The Parker Administration is recruiting, training, and retaining the public workforce by proposing:
- Unprecedented Labor Reserve: $550 million in funding for the Labor Reserve as the City negotiates fair, fiscally responsible, multi-year agreements with its unionized workforce
- Human Resources:
- $5 million annually for SEPTA benefits for employees
- $5.7 million over five years for strategic human resource investments, including branding, “HR University” for City HR professionals, additional Psychologist capacity at the MEU, and a driver for the hiring bus
- Public Safety Workforce:
- $225,000 to purchase lactation pods for the Fire Department
- $350,000 annually for Police recruitment
- $1.3 million to modernize Police uniforms; and approval to hire a licensed mental health professional at the Police Department
2026 Preparations for Semiquincentennial
The proposed budget includes more money ahead of 2026 to bring Philadelphia’s total General Fund investment in semiquincentennial special events to $100 million, which includes funding for:
- Beautification:
- $750,000 for Community Life Improvement Program (CLIP)
- $790,000 for Mural Arts in FY26 and FY27 for highway beautification
- $250,000 for tree pruning
- $500,000 for supplies for Parks & Recreation
- $500,000 for clean and green supplies
- Lemon Hill preparedness: additional funding under OTIS (Office of Transportation and Infrastructure Systems) and Parks & Recreation (capital) over $250,000 for network connectivity via OIT (Office of Innovation and Technology) on top of existing Lemon Hill commitments
- City Representative/Office of Special Events: $1.5 million over two years for vehicle rentals, portable restroom rentals, increased travel expenses, and communications support
- Behavioral Health: $500,000 in FY26 and FY27 for increased outreach
If approved, the budget will take effect on July 1. The Parker Administration says it will host town halls across the city to gather feedback and share how funding will impact their neighborhood. Click here to see all proposed budget related material from the City of Philadelphia’s Office of the Director of Finance.