Mayor Parker spends big in $6.7B Philly budget plan
Why it matters: Parker is keeping her foot on the gas, seeking to boost spending by nearly 6% over last year to check items off her ambitious agenda.
That's despite uncertainty about future federal funding and worrying signs of a big Philadelphia employer's exodus.
The big picture: Her proposal doubles down on the cornerstones of her administration — public safety, housing and quality-of-life issues.
Among the biggest new initiatives unveiled Thursday: directing $800 million into housing programs.
Zoom in: She wants to issue $400 million in bonds for the coming fiscal year and plans to spend that money "as quickly as possible."
"I want shovels in the ground," she said during her budget address.
The bond financing would reach a total of $800 million over five years.
The plan would also rely on what Parker described as a "small increase" to the realty transfer tax, meaning it will cost more to sell and buy property. (The administration declined to share exact figures with Axios.)
Context: Philly has long suffered from an affordable housing shortage.
And Parker has pledged to build or preserve 30,000 units of affordable housing during her tenure.
Yes, but: Parker didn't provide details about the plan, which was originally expected to be revealed last fall.
Instead, her administration will unveil its full housing plan on March 24 during a special legislative session.
What she's saying: Parker boasted that her plan was "brimming with vital investments" and would "spur businesses to grow and new ones to locate here."
What else: Parker's tax reform would extend beyond the realty transfer tax and would span years.
💰 Business taxes: Her plan would cut the city's business income and receipts tax (BIRT) and modestly reduce the wage tax.
The goal: Eliminate the gross receipts tax portion of BIRT and reduce the net income portion by half by fiscal year 2039.
As for the wage tax, which residents and nonresidents pay, small reductions would continue through fiscal year 2030.
📈 Tax hike (sort of): Philly's small businesses will start paying more taxes.
Due to legal challenges, the city will eliminate a BIRT tax break on the first $100,000 in gross receipts — a benefit that effectively allows the bulk of city businesses to not pay BIRT.
Yes, but: The city is expected to offer some financial assistance to help affected businesses.
Meanwhile, the city's on track to fully fund its pension fund for municipal workers by fiscal year 2033.
That's a big deal because it would save the city an estimated $430 million a year.
What's next: Parker's plan is an outline, kicking off deliberations with city legislators — who have their own priorities — ahead of a budget deadline of July 1, when the new fiscal year begins.
But the Democratic-led City Council has largely marched in lockstep with Parker since she took office last year.
Other big takeaways
🅿️ Parking cost hike: Her plan includes hiking parking meter rates in Center City to $4 an hour from $3 — the first increase since 2014.
⚖️ Opioid crisis: $2.7 million to expand the city's "neighborhood wellness court" to five days — up from one.
The fast-track diversion program gives people arrested for low-level misdemeanor charges associated with public drug use the option of seeking treatment that day instead of facing criminal penalties.
🏥 Drug recovery: The city's Riverview Wellness Village in Holmesburg, part of which opened this year, would get $216 million over five years.
The administration would funnel $100 million in the coming fiscal year for operations and buildout, per KYW.
🏗️ Cutting construction costs: The mayor wants to eliminate the city's 1% construction impact tax to spur investment.
The levy funds affordable housing and neighborhood revitalization.
🧬 Police lab: $67 million through fiscal year 2030 for a new police forensic science lab set in West Philadelphia along the 4100 block of Market Street.
🔎 Police accountability: The police department will equip all officers with body-worn cameras by the end of the year, she said.
The city also is moving to install dashboard cameras in all police vehicles.
🎒 Schools: The city's extended school day program will add 10 district schools and five charters in September, growing to a total of 40 schools.
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