PHILADELPHIA — Today, Mayor Cherelle L. Parker delivered to Philadelphia City Council her proposed FY26 Proposed Operating and Capital Budgets, FY26-30 Proposed Five Year Plan, and Recommended FY26-31 Capital Program that detail bold, targeted investments in each of Mayor Parker’s top priority areas, including public safety, cleaning and greening, housing, the City workforce, tax reform, wellness, and more. The proposed FY26-30 Five Year Plan and recommended FY26-31 Capital Program add:

• $2.30 billion in new operating investments through FY30, including debt service on $800 million in new borrowing for the Parker administration’s new H.O.M.E. Initiative to build or restore 30,000 housing units.

• $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 a Philadelphia the Safest, Cleanest, Greenest Big City in the Nation with Access to Economic Opportunity for All,” said Mayor Cherelle L. Parker. “Today, I am proud to submit my Proposed Fiscal Year 2026 Budget, Five-Year Plan and Recommended Capital Budget and Program to City Council for its consideration.”

See here for the Mayor’s full remarks as prepared for delivery.

Fiscal Health

The budget is being proposed at a time when Philadelphia’s finances remain stable but face heightened risks. That financial stability will help the City respond to those uncertainties while making the critical investments included in this budget. Among the ways in which the City is prepared for its fiscal future are:

• A Budget Stabilization Reserve Fund. The City’s fiscal health remains strong with the City continuing to make contributions to the Budget Stabilization Reserve Fund, which will have $280 million by the end of the Proposed Five-Year Plan.
• Highest Combination of Bond Ratings in Decades. S&P Global Ratings upgraded the City of Philadelphia to its highest combined credit ratings in decades.  The new ‘A+’ rating with a long-term Stable outlook, is the second ratings upgrade during Mayor Parker’s Administration, following Fitch’s upgrade in June.
• City’s Pension Funding. The Fund reached a 65 percent funding level – the highest in decades. That’s an increase of more that 20 percentage points in just eight years. The Pension Fund is due to reach 80 percent in FY29 and 100 percent by FY33. Once these obligations to our workers are fully funded, the City annual general fund costs will drop by more than $430 million, creating additional funding for the administration’s biggest priorities.
• A $95 million reserve for federal funding. The reserve is designed to give the City time to react to changes in federal policy as they come.

“Building a budget requires prioritization and trade-offs,” said Sabrina Maynard, Budget Director. “This Proposed Plan makes critical investments while setting the City and future mayors up for long-term fiscal health, building reserves as the City navigates the expiration of COVID relief funds, federal uncertainty, and a legacy pension obligation bond balloon payment in the penultimate year of the Plan.”

The FY26-30 Five Year Plan builds on the historic investments made in Mayor Parker’s first budget, the “One Philly Budget” to advance her vision across five pillars – public safety, clean and green, economic opportunity, housing, and education – and the core support functions that undergird City government. These investments enabled the Parker Administration to move swiftly in launching multiple major initiatives, each of which is having an on-the-ground impact that residents and businesses can see, touch, and feel.

The Five-Year Plan encompasses top mayoral initiatives and the vast array of critical programs and services delivered by City government.  This budget builds on that foundation by proposing the following new funding.

Investments in Housing

The Proposed Five-Year plan includes $800 million in two borrowings for a historic investment in Housing Opportunities Made Easy (H.O.M.E.) Initiative to produce, preserve and stabilize 30,000 housing units along with:

• Planning and Development: $11 million over five years for 32 new positions and consultant support to support implementation of the housing plan.
• Licenses and Inspections (L&I): Expanded L&I and legal capacity through proposed funding for an additional Clean and Seal crew and five additional code enforcement attorneys.
• Tangled Title: $300,000 a year in new expanded title investments, funded by a proposed $3 increase to the Document Recording Fee.

Investing in Public Safety

The budget proposes critical continued investments as well as $746 million in new operating and $289 million in capital funding for the following:

• Forensics Lab: An additional $67 million over the Plan for the new Forensics Lab in West Philadelphia and related costs.
• Police Department: Expand the Police Assisted Diversion unit in FY26 as a pilot with a $2.8 Million investment. $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, including for ID machines, drones, bar scanners, and mobile devices.
• Prisons Department: $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 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 to the Supervised Child Visitation Program.
• Public Health: $3.4 million over five years to backfill expiring antiviolence grants; $100,000 annual increase to the indigent burials line (under Finance).
• 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).

Investing in a Cleaner & Greener Philadelphia

This Proposed Plan includes $65 million in new operating investments and over $752 million in capital funding to make the City cleaner and greener including:

• 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: Additional funding for turf and landscape maintenance ($1 million annually) + for chlorine ($250,000 annually) + for supplies (trash bags, supplies, safety equipment, $160,000 annually) due to continued inflation; $130,000 to address short-dumping; $500,000 in new youth sports funding (including YMCA camp) in FY26.
• Sanitation: $750,000 annually for Clean & Green Initiatives; $326,000 in FY26 for a trash and recycling cart container pilot.
• Sustainability: $75,000 annually for an Environmental Justice position; $200,000 in FY26 for Eastwick Flood Resilience Strategy planning support; and $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.

Investing in Philadelphians Wellness 

This budget proposes critical investments in the wellness ecosystem, bringing the City’s capital investment to date up to $175 million for recovery-based housing, clinical services, and medical care for those with histories of substance use disorder, mental or behavioral health, or homelessness, along with the following:

• 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.

Investing in Economic Opportunity & Tax Reform

This budget proposes more than $451 million in historic operating budget investments in economic opportunity, including:

• 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 Administration is proposing continuing those 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 half.  Those tax investments would be included in legislation to give businesses predictability.
• Creative Philadelphia: $250,000 in FY26 and $50,000 from FY27 on for nighttime economy programming.
• Commerce: $30 million annually, $150 million over five years for the new Jumpstart Business Program and $150,000 for a tax incentive study.

Investing in Philadelphia’s Workforce

The public workforce is essential to making the City of Philadelphia run. This is why the Administration is making every effort to recruit, train, and retain the public servants across City government who deliver core services for Philadelphians, including:

• 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; and $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.

Investing in 2026 Preparations

This budget proposal includes additional investments in advance of 2026 bringing the City’s total General Fund investment in 2026 special events to $100 million. Proposed funding includes:

• Beautification: $750,000 for CLIP and over $790,000 for Mural Arts in FY26 and FY27 for highway beautification; $250,000 for tree pruning and $500,000 for supplies for Parks & Recreation; $500,000 for clean and green supplies.
• Lemon Hill preparedness: additional funding under OTIS and Parks & Recreation (capital) over $250,000 for network connectivity via OIT 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.

“Philadelphia’s residents and taxpayers expect results and accountability – to know what the City achieved to improve their quality of life and what the Administration will do in the future,” continued Mayor Parker. “I look forward to engaging with communities across the city to make the case for our proposed FY2026 budget and working with City Council to adopt this plan in the months ahead.”

Neighborhood Budget Town Halls

The Parker Administration will host a series of town halls across the city to engage residents in their neighborhoods about issues that matter to them and how funding will impact their community.

To view all proposed budget related material, click here.