Moves on the Board: Week of March 10 - 14
FY26 Quiz: Budget Moves
What is the total proposed city budget for FY26?
A. $5.2 billion
B. $6.7 billion
C. $7.1 billion
D. $9.0 billion
2. By what percentage is city spending increasing in Mayor Parker’s proposed budget?
A. 6%
B. 4.5%
C. 8%
D. 2.5%
3. How much is being set aside in reserves to handle potential federal funding cuts?
A. $95 million
B. $100 million
C. $50 million
D. $125 million
4. The administration plans to borrow $800 million for housing – split evenly over which two fiscal years?
A. FY25 and FY26
B. FY26 and FY27
C. FY27 and FY28
D. FY28 and FY29
5. The City’s pension is expected to be fully funded by which fiscal year?
A. FY27
B. FY30
C. FY33
D. FY37
♟️CITY OF PHILADELPHIA
Parker Administration
Mayor Cherelle L. Parker presented her FY26 City Budget on Thursday, March 13 to City Council, members of the Parker administration, intergovernmental leaders, and external stakeholders. The Parker administration proposed increasing the city’s spending by 6% for a FY26 Budget topline of $6.7 billion. The City’s pension will achieve 65% funding in FY26 and will be fully funded by FY33 – an unprecedented fully funded city pension will alleviate current limitations in the city’s spending patterns and allow future administrations to invest resources in services. Amid federal uncertainty, the administration is putting $95 million in reserve should the city see any federal funding cut.
Taxes: Mayor Parker proposed several reductions to the Wage and BIRT taxes, eliminating the construction tax, and repealing some exemptions to BIRT. The administration proposed increasing the Center City parking rate, the real estate transfer tax, and the document fee to remain revenue-neutral with their proposed tax cuts.
Housing: The Mayor’s FY26 Budget proposes borrowing $800 million ($400 million in FY26 and $400 million in FY27) to tackle the city’s housing shortage in support of the H.O.M.E. initiative. The budget also provides the Planning & Development Department with additional resources to implement H.O.M.E. and other city revitalization projects, such as reimagining East Market Street.
Public Safety: Since the administration took office, the city has seen a significant reduction in crime, which is aligned with national trends. Mayor Parker proposed an additional $716 million in operating and $289 million in capital resources across the city’s public safety ecosystem.
Clean & Green: The Mayor is leaning into capital investments to improve the city’s green infrastructure in FY26 through increasing investment in planters, vacant lot beautification, and community gardens. The Office of Clean & Green will expand the twice-weekly trash collection pilot that is currently underway and expand illegal dumping enforcement. The administration will make additional investments in Vision Zero programs and capital improvements.
Wellness: The Parker administration will continue to invest capital and operational resources in the Riverview Wellness Center to support Philadelphians struggling with substance abuse. The FY26 Budget will also expand the Wellness Court, established earlier this year, from operating two days a week to five days a week.
Labor: Four of the city’s municipal unions will negotiate new contracts with the Parker administration this spring. All contracts expire June 30, 2025. The administration reserved $550 million in the FY26 Budget to support new contracts.
2026: The Parker administration announced further investment to 2026 related activities increasing their investment to over $100 million.
Join the Bellevue Strategies Government Relations team on Tuesday, March 18, for a FY26 Budget Breakdown. Registration is required, click here to save your spot and grab a free guest pass to the Sporting Club at The Bellevue for joining us.
Philadelphia City Council
This week Philadelphia City Council held one hearing with the Committee on Streets & Services to discuss encroachments and automated speed cameras within specified school zones.
The Committee on Streets & Services met on Tuesday, March 11, to discuss Bill No. 250148, sponsored by At-Large Councilmember Isaiah Thomas, which would authorize the deployment of speed cameras in designated school zones. The Office of Transportation and Infrastructure Systems (OTIS) testified in support of the legislation, which would allow automated speed enforcement in up to seven school zones as part of a pilot program. The program would activate speed cameras in five school districts, with OTIS emphasizing that such measures have been proven to reduce speeding and reckless driving while enhancing student safety. OTIS highlighted the success of speed cameras on Roosevelt Boulevard, where violations dropped by 95%, pedestrian-involved crashes decreased by 50%, and fatal and serious injury crashes declined by 21%. While the proposal includes an educational campaign and a 60-day warning period before enforcement begins, some council members stated concerns. The legislation is being held until further notice.
Legislation We’re Watching
The Parker administration’s FY26 Budget legislative package was introduced yesterday.
Bill No. 250196 - FY26 Operating Budget
Bill No. 250197 - FY26 Capital Budget
Bill No. 250198 - FY26-FY31 Five-Year Plan
Bill No. 250211 - Amending the Realty Transfer Tax
Bill No. 250210 - Increasing the fee for recording deeds & mortgages
Bill No. 250200 - Increasing the parking fee
Bill No. 250202 - Eliminating an exemption to the Use & Occupancy Tax
Bill No. 250195 - Amending the Wage & Net Profits Tax
Bill No. 250199 - Amending the BIRT tax
Bill No. 250201- Increasing the tax the Board of Education of the School District of Philadelphia can impose on real estate
At Thursday's Council session, the Parker administration introduced a third transfer ordinance (appropriations package) for the current fiscal year’s FY25 spending.
Bill No. 250206 - Authorizing FY25 operational transfers from the General Fund
Bill No. 250205 - Amending FY25 Capital Budget
Bill No. 250214- Amending FY25-FY30 Five Year Capital Program Budget
Bill No. 250212 - Ending the 1% construction tax
Councilmember Ahmad introduced Bill No. 250213 to provide additional penalties, enforcement, and compliance measures for the sale of electronic smoking devices (vapor).
NEXT WEEK’S MOVES
If you’d like to keep up with City Budget hearings, check out City Council’s Budget Center for the full schedule and relevant documents. Budget hearings kick off on Tuesday, March 25. Mayor Parker will address City Council in a special legislative session on Monday, March 24, to unveil her comprehensive housing plan.
The Joint Committees on Public Safety and Public Health and Human Services will hold a hearing on Monday, March 17, to discuss resolution number 240703 that authorizes hearings to investigate the effectiveness and potential expansion of mobile mental health units.
The Committee on Public Property and Public Works will meet on Monday, March 17, to discuss bill numbers 250149, 250068, and 250067 regarding roadway improvements, lease agreements, and a perpetual right and easement on, over and across a certain tract of land at the intersection of Southampton Road and Roosevelt Boulevard for roadway and related improvements.
The Joint Committees on Housing, Neighborhood Development & the Homeless and Licenses and Inspections will hold a hearing on Tuesday, March 18, to consider resolution number 240267 to hold public hearings that examine the conditions of rental housing, rental code enforcement, and the need for rental repairs throughout the City of Philadelphia.
The Committee on Technology and Information Services will hold a hearing on Wednesday, March 19, regarding resolution number 240059, the operation of the Philadelphia 311 non-emergency hotline and its engagement with City departments.
The Committee on Rules will hold a hearing on Wednesday, March 19, on bill number 240333 to update the illustrative maps to reflect recent redistricting changes.
♟️COMMONWEALTH OF PENNSYLVANIA
Shapiro Administration
On Tuesday, Governor Shapiro joined state legislators at a press conference to announce legislation introducing his Lightning Plan. This six-piece legislative package is intended to increase Pennsylvania’s energy production while also lowering consumer costs.
On Wednesday, Governor Shapiro and the Pennsylvania Department of Environmental Protection joined leaders from Penn Mechanical Group in Washington County to plug the 300th abandoned well under his administration. The Shapiro Administration has plugged more abandoned wells than any other administration in nearly two decades. The Governor’s actions highlight his dedication to public health and environmental protection while creating new jobs throughout the Commonwealth.
📰 Updates from the Governor’s Newsroom
♟️PENNSYLVANIA GENERAL ASSEMBLY
Committee News
House:
The House Finance Committee met on Wednesday, for a public hearing to discuss House Bill 820, new legislation that would create the Working Pennsylvanians Tax Credit. This would provide PA taxpayers with a percentage of what they receive from the Earned Income Tax Credit. Representative Christina Sappey (D-Chester), the prime sponsor of the bill, testified on the importance of the EITC and how 31 other states in the country have already adopted this policy. Chairman Steve Samuelson (R-Northampton) highlighted that the bill previously passed the House in 2023. Several local organizations in the Lehigh Valley testified on the importance of this bill and its impact for helping low-income and working families.
Senate:
The Senate Democratic Policy Committee met on Tuesday, for a public hearing to discuss hospital closures and healthcare accessibility. Lawmakers emphasized the need for stronger oversight and transparency of private equity in healthcare, due to its part in hospital closures.
Next Week’s Moves
The House of Representatives will convene for a voting session next week on March 17. Several House committees will be meeting for informational and voting hearings.
To view the full schedule of hearings next week click here.
The House Calendar for Monday, March 17 is published here with the bills that are on second consideration for the floor.
The House and Senate will both be in voting session the week of March 24.
Game Answer Key
1. B ( $6.7 billion )
2. A ( 6% )
3. A ( $95 million )
4. B ( FY26 and FY27 )
5. C ( FY33 )