City Hall green lights Mayor Parker's $6.8B budget
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Philadelphia legislators signed off Thursday on Mayor Cherelle Parker's $6.8 billion budget, including her centerpiece housing initiative.
Why it matters: Parker's plan makes big promises, including cuts to business and wage taxes, no tax increases for property owners, and more homes.
- But it all comes with a big price tag, despite lingering questions about the potential loss of future federal funding.
By the numbers: Under the plan, overall spending will increase nearly 7.5% over last fiscal year. The new fiscal year starts July 1.
🏘️ Inside the plan: Legislators gave the green light to borrow $800 million for Parker's Housing Opportunities Made Easy initiative, which aims to build and preserve 30,000 housing units.
- The initiative will fund a variety of new housing programs while expanding some existing ones.
- Plus: The legislation allows the Parker admin to fast-track the sale of up to 1,000 parcels of city-owned land without legislative approval, which has bogged down some land sales.
💰Tax cuts: Workers in the city — both residents and non-residents — will see their wage taxes decline modestly over five years.
The intrigue: Businesses are the biggest winners. They'll see the city's business income and receipts tax (BIRT) slashed over 13 years.
- BIRT's gross receipts portion will steadily decline until it's eliminated in 2039. Meanwhile, BIRT's net income portion will be cut by more than half by then.
The fine print: Due to legal challenges, the city is eliminating a BIRT tax break on the first $100,000 in gross receipts, which will hurt small businesses.
The big picture: Parker and her vision for the city appear to be winning over Philadelphians.
What else: City council approved legislation that will:
- 🅿️ Increase parking meter rates in core Center City to $4 an hour from $3, while the greater Center City area will see rates rise to $3.50 from $2.50.
- 🏗️ Eliminate the 1% Development Impact Tax for certain affordable housing projects. Proceeds from the levy have been used for affordable housing and neighborhood revitalization.
- 💸 Create a new anti-displacement fund to help pay relocation assistance costs to tenants forced from their home due to unsafe conditions.
Editor's note: This story has been corrected to show that Mayor Parker's budget eliminates the 1% Development Impact Tax for certain affordable housing projects (not entirely).