Parker's big $7B budget: More shelter beds and new fees on deliveries, ride shares
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Mayor Cherelle Parker's roughly $7 billion budget blueprint targets Philadelphia's homelessness epidemic as a top priority while eyeing new fees on the gig economy.
Why it matters: The mayor's third spending plan signals Parker isn't slowing down as she hikes spending by approximately 1.8% over last year and digs in on improving quality-of-life issues, public safety and schools.
What they're saying: Parker said during her budget address before City Council in City Hall that her proposed new taxes will be paid by companies benefiting from doing business in Philly.
- She added that the revenues will allow the city to "continue to make those big things possible," like improving affordable housing, economic mobility and public safety.
Zoom in: Parker aims to add 1,000 beds to its shelters across the city to address street homelessness.
- The city has seen homelessness rise four years in a row, topping 5,500 individuals last year.
- How to pay for it: A proposal to increase the hotel tax by 2%, bringing the city's and state's total to 17.5%, starting in August. This would raise roughly $20 million annually.
- Her goal: End street homelessness in Philly over the coming years.
Threat level: The hotel-tax plan needs state lawmakers to sign off, a potential roadblock as they (particularly House and Senate Republicans) have a history of pooh-poohing Philly tax hikes when possible.
🚗 Ride share fee: A bill linked to the budget would slap a new 20-cent-per-ride fee on trips that originate in Philly on Uber, Lyft and other ride share services.
- This would add to what the city's parking authority already charges ride share companies — 1.4% on gross receipts.
- The revenues from this tax ($9.6 million annually) would be earmarked for the city's school district.
🛍️ Retail delivery fee: Another proposal would place a new 25-cent fee per retail order from companies like Gopuff and Amazon.
- Exceptions to the fee would be carved out for food, medical devices, baby products and other designated essential items.
👀 Worth noting: It remains to be seen what these new business taxes will mean for gig-economy customers and drivers.
- That's because when it comes to Philly-specific taxes, companies have not shied away from passing them onto the customer — think: The city's soda tax.
Case in point: Uber spokesperson Jazmin Kay tells Axios that a new ride-sharing fee will make rides cost more in Philly on the popular app.
- "This additional tax, on top of the existing tax, will be passed on directly to riders who will pay more on each ride," she said.
🏘️ Meanwhile, Parker's proposal would keep property taxes flat for another year for property owners.
- The caveat: Most will see their property taxes increase because the city will resume property reassessments, which were skipped last year, per the Inquirer.
- New assessments are typically out in April and May, but Parker has delayed them in the past.
- Joe Grace, a spokesperson for the mayor, declined to provide a timeline for when the Parker administration will reveal details about property reassessments.
What's next: The mayor's proposed spending plan now goes to City Council, which has until July 1 to pass a budget.
- Budget hearings begin March 24.