Philly City Council rejected Mayor Parker's big tech taxes and fund public schools with existing money

Key Points:

• Philadelphia City Council gave preliminary approval to a $7.1 billion budget for the fiscal year starting July 1, rejecting most of Mayor Cherelle L. Parker’s proposed tax increases on gig economy companies and delivery services.
• To address the School District of Philadelphia’s budget shortfall, Council allocated an additional $48 million in one-time funds from various city department savings, rather than adopting Parker’s proposed $1-per-ride rideshare tax.
• The Council did approve applying the use-and-occupancy tax to cell phone towers, expected to generate about $2.4 million annually for the school district, but rejected other tax hikes on hotels, short-term rentals, and retail delivery services.
• The rejection of Parker’s tax proposals marks her most significant legislative setback since taking office, with Council also declining to approve additional funding requests for individual members’ projects as part of budget negotiations.
• The school district faces a $300 million deficit and plans to cut over 300 staff positions; while Superintendent Tony B. Watlington Sr. remains open to different funding sources, the reliance on one-time city funds raises concerns about future budget stability and potential cuts.