The Committee of the Whole, which convened Wednesday morning at 9:00 to formally release the budget bills so they could be heard by the full council, finally did so more than 24 hours later, on Thursday afternoon. The bills needed to be brought before the entire council before the end of the week so they could be passed on June 12th, the last day of the spring legislative session. Had the legislation not been passed in a timely fashion, another session day would have been added to the council calendar.
It is not uncommon for budget bills to require longer to finalize than other types of legislation. Often, the passage of budget bills can come down to the proverbial “last minute,” with negotiations sometimes dragging out behind closed doors.
That was the case this year, as Council and the Mayor had not must budget, but the HOME plan, which looks to add 30,000 units of affordable housing or preserved housing to the city.
The final budget passed out of committee has approximately $98 million in additional spending compared to the document introduced last March. The funds will mostly come from the city’s fund balance, or tax money leftover after the city meets it’s obligations.
Major funding increases were allocated for the following departments (all from the city’s General Fund)
Office of Arts, Culture, and the Creative Economy
Proposed Appropriation: $5.4 million
Final Appropriation: $9.7 million
The Defenders Association
Proposed Appropriation: $67.5 million
Final Appropriation: $69 million
The Fire Department
Proposed Appropriation: $431.7 million
Final Appropriation: $444.2 million
Parks and Recreation
Proposed Appropriation: $83.5 million
Final Appropriation: $87.3 million
Department of Finance
Proposed Appropriation: $83.3 million
Final Appropriation: $115.9 million
Economic Stimulus (Commerce Department)
Proposed Appropriation: $78.5 million
Final Appropriation: $101.4 million
The Law Department
Proposed Appropriation: $16.6 million
Final Appropriation: $18.4 million
The District Attorney’s Office
Proposed Appropriation: $58.4 million
Final Appropriation: $59.3 million
Department of Planning and Development
Proposed Appropriation: $17.6 million
Final Appropriation: $27.4 million
Office of Prison Oversight
Proposed Appropriation: $1 million
Final Appropriation: $1.3 million
There was also a significant increase in the FY 2026 Capital Budget, which rose from $6.435 billion to $6.551 billion.
Another significant piece of legislation tied to the Budget bills is the proposed change to the Business and Receipts Tax (BIRT). In addition to elimination of a tax exemption on the first $100,000 dollars on income, the BIRT rate in FY 2026 will be 5.65%, down from FY 2025’s 5.71%. Below are the scheduled BIRT reductions through 2038:
| 2022 | 1.415 mills | 5.99% |
| 2023 [and thereafter] | 1.415 mills | 5.81% |
| 2024 | 1.415 mills | 5.81% |
| 2025 | 1.410 mills | 5.71% |
| 2026 | 1.395 mills | 5.65 % |
| 2027 | 1.390 mills | 5.60% |
| 2028 | 1.385 mills | 5.55% |
| 2029 | 1.380 mills | 5.50% |
| 2030 | 1.255 mills | 5.45% |
| 2031 | 1.130 mills | 5.30% |
| 2032 | 0.955 mills | 4.95% |
| 2033 | 0.780 mills | 4.60% |
| 2034 | 0.605 mills | 4.25% |
| 2035 | 0.430 mills | 3.90% |
| 2036 | 0.255 mills | 3.55% |
| 2037 | 0.080 mills | 3.20% |
| 2038 and thereafter | 0 mills | 2.80% |
Additionally, the city Wage and Net Profits Tax is scheduled to be reduced in FY 2026 from 2.24% to 2.235% for those who live in the city, and from 3.43% to 3.425% for non-residents. Further reductions are scheduled to continue until 2029.
Mayor Parker’s key 2025 initiative, the H.O.M.E plan, was also passed out of committee and had its first reading in Council last Thursday. Passage is expected on June 12th.
The plan would include an $800 million dollar bond issuance; $400 million this year and a second $400 million in 2027. Last week, we reported on the City Council amendment providing oversight to the legislation; a further layer was added prior to the bill being moved from committee that will include the City Controller in oversight of the spending.
Each piece of legislation will have a final vote on June 12th, 2025.
Committee Hearings
The following committees of Philadelphia City Council met last week to hear testimony on the following legislation:
The Committee on Public Safety
Amending Chapter 9-600 of The Philadelphia Code, entitled “Service and Other Businesses, to add a new Section 9-640, entitled “Mandatory Posting of Warning of Unlawful Transfer of Firearm,” to require licensed firearms dealers to post signs warning that purchasing firearms for another is criminally punishable; all under certain terms and conditions.
Amending Chapter 9-3500 of Title 9 of The Philadelphia Code, entitled “Fair Criminal Record Screening Standards,” to amend definitions, add clarifications, and enhance remedies, all under certain terms and conditions.
The Housing Committee heard testimony on the following legislation:
Bill No. 250329 (Did Not Advance)
Amending Chapter 9-3900 of The Philadelphia Code, entitled “Property Licenses and Owner Accountability,” to clarify licensing requirements, authorize the Department to create a Proactive Inspection program, require public reporting related to Code compliance, and establish remedies, damages, and protections for tenants, all under certain terms and conditions.
Bill No. 250330 (Did Not Advance)
Amending Chapter 9-800 of The Philadelphia Code, entitled “Landlord and Tenant,” to modify the requirements related to good cause for ending a tenancy, add protections against retaliation and harassment for tenants and tenant organizations, specify tenants’ rights related to the implied warranty of habitability and provide a legal presumption related to breaches of the implied warranty of habitability, create a tenant right to organize, specify deadlines for asserting claims, and establish and enhance enforcement mechanisms, remedies, damages, and protections, all under certain terms and conditions.
Amending Chapter 9-800 of The Philadelphia Code, entitled “Landlord and Tenant,” to hereby authorize the creation of an Anti-Displacement Fund, to establish violations for displacement, and to authorize the Department of Planning and Development to administer the Anti-Displacement Fund; and amending Section A-505, entitled “Cease Operations Order” to add notice requirements, all under certain terms and conditions.
The Committee on Finance heard testimony on the following legislation:
Amending Chapter 19-200 of The Philadelphia Code, entitled “City Funds – Deposits, Investments, Disbursements,” by amending Section 19-201, entitled “City Depositories,” to remove Citibank, N.A. and Republic First Bank as authorized financial institutions in which the City Treasurer may deposit funds, all under certain terms and conditions.
Authorizing the Procurement Commissioner, on behalf of the City of Philadelphia, to enter into an agreement with the Philadelphia Energy Authority for coordination of a guaranteed energy savings contract for implementation and evaluation of energy conservation measures designed to reduce energy, water, wastewater, or other consumption or operating costs at specified City properties, all under certain terms and conditions.
Amending Chapter 19-4600 of Title 19 of The Philadelphia Code, entitled “Low-Income Tax Provisions,” by extending the deadline for low-income taxpayers to apply for a refund or forgiveness of Real Estate Taxes, under certain terms and conditions.
Amending subsection 19-2604(6) of The Philadelphia Code, entitled “Credit for Contributions to Community Development Corporations, Nonprofit Organizations Engaged in Developing and Implementing Healthy Food Initiatives and Nonprofit Intermediaries,” under which businesses may enter into agreements to make contributions to community development corporations and certain other organizations to receive tax credits, by expanding eligibility for recipients of such funds and the uses to which such funds may be used; and which taxes that are used for this tax credit program, and increasing the number of businesses to which the credit shall be made available; and providing the option for a commensurate grant program; all under certain terms and conditions.
Amending Chapter 19-3200 of The Philadelphia Code, entitled “Keystone Opportunity Zone, Economic Development District, and Strategic Development Area,” to provide for additional extensions of certain benefits, under certain terms and conditions.
Approving the Fiscal Year 2026 Capital Budget providing for expenditures for the capital purposes of the Philadelphia Gas Works, including the supplying of funds in connection therewith, and acknowledging receipt of the Revised Forecast of Capital Budgets for Fiscal Years 2027 through 2031, all under certain terms and conditions.
Approving the amendment of the Fiscal Year 2025 Capital Budget providing for expenditures for the capital purposes of the Philadelphia Gas Works (including the supplying of funds in connection therewith) subject to certain constraints and conditions and acknowledging the receipt of the Revised Forecast of Capital Budgets for Fiscal Years 2026 through 2030, as amended.
Authorizing an increase in the non-electoral indebtedness of the City within the Pennsylvania constitutional limit; authorizing the Bond Committee to sell bonds at public or private negotiated sale, to provide funds toward various capital municipal purposes; providing for appropriations to the Sinking Fund Commission for the payment of such bonds; and authorizing agreements to provide credit or payment or liquidity sources for the bonds in connection with issuance of the bonds, and certain other actions.
Authorizing the Director of Planning and Development, on behalf of the City, to file applications with the United States Department of Housing and Urban Development for a Community Development Block Grant; to file applications to participate in the HOME Investment Partnership program and the Emergency Solutions Grant program; and to apply for a Housing Opportunities for Persons with AIDS grant; and to file applications with the Commonwealth to obtain grants under the Act of April 12, 1956, P.L. 1449, Section 4, as amended, to prevent and eliminate blight; authorizing the Director of Planning and Development and the Director of Commerce to file applications to obtain other grants from the Commonwealth; authorizing the Director of Commerce to use the Section 108 Loan Guarantee Program; and authorizing the Director of Planning and Development and the Director of Commerce to enter into all understandings and assurances contained in such applications and take all necessary action to accept ..
Constituting the Twenty-Eighth Supplemental Ordinance to the Restated General Water and Wastewater Revenue Bond Ordinance of 1989, as supplemented; authorizing the Bond Committee to issue and sell one or more series or subseries of tax-exempt or taxable water and wastewater revenue bonds and revenue refunding bonds; authorizing agreements to provide credit enhancement or payment or liquidity sources (or any combination of the foregoing) for such Bonds; providing that such Bonds shall bear interest at fixed or variable rates; determining the sufficiency of pledged Project Revenues; authorizing the Director of Finance to take certain actions with regard to the sale of such Bonds, the investment of proceeds thereof and the City’s continuing disclosure obligations with respect to such Bonds; setting forth the use of proceeds of such Bonds; covenanting the payment of interest and principal; supplementing the Restated General Water and Wastewater Revenue Bond Ordinance of 1989; and specifyin…
Authorizing and approving the execution and delivery of a Service Agreement between The City of Philadelphia and the Philadelphia Redevelopment Authority relating to the financing of a Housing Opportunities Made Easy (H.O.M.E.) Plan which includes housing production and preservation, home affordability, home owner and renter assistance, related contractor training and support, blight and vacant property reduction, urban beautification, neighborhood infrastructure, and other related programs; approving the issuance by the Authority of bonds, notes or other evidences of indebtedness (including reimbursement obligations related to lines or letters of credit) in one or more series to finance or refinance such plan and authorizing and approving the obligation of The City of Philadelphia to pay in full when due the Service Fee and other amounts payable under the Service Agreement; authorizing certain City officers to take certain actions required to issue such bonds, notes or other evidences…
Authorizing various encroachments in the vicinity of 2654 S 10th St, Philadelphia, PA 19148, under certain terms and conditions.
Authorizing encroachments in the nature of a sidewalk caf? in the vicinity of 2101 E York St, Philadelphia, PA 19125, under certain terms and conditions.
Amending Chapter 17-1400 of The Philadelphia Code, entitled “Non-Competitively Bid Contracts; Financial Assistance,” to modify exceptions and provide for reporting and recordkeeping in connection with invocation of such exceptions, all under certain terms and conditions.
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