Yesterday, the Philadelphia City Council passed a landmark $6.37 Billion budget for the 2025 fiscal year, which begins on July 1st. This follows a period of intensive negotiation and marks the first budget under the guidance of Mayor Cherelle Parker and Council President Kenyatta Johnson. "I want to thank Mayor Cherelle Parker, Council’s leadership team and all members of City Council for working together to create Operating and Capital Budgets that will move Philadelphia forward," said Johnson in a statement obtained by Philadelphia City Council. He emphasized that Philly's most pressing challenges are met head-on with this budget, fostering the development of safe, and prosperous communities for all citizens.
The FY 2025 budget, also called the "One Philly Budget," was originally proposed by Mayor Parker on March 14 with a focus on keeping Philly tax-free while spurring growth and development. The budget encapsulates over $10 billion in spending over the next five years, with strategic allocations aimed at public safety, economic opportunity, and education. Public safety gets a significant boost with $636 million aimed at hiring 400 new police officers, anti-drug initiatives, addressing crimes against properties and improving victim advocacy services. For economic opportunity, there's a $306 million provision which includes $10 million geared towards workforce development and partnerships with employers. Education has not been left behind, with an allocated $293 million set to enrich K-12 schools and launch City College for Municipal Employment, a collaborative initiative between the Community College of Philadelphia, the City, and the School District, as reported by the Philadelphia City Council.
Among the additions to the budget, which signal the Council's responsiveness to community needs, include an increased $4.8 million to violence prevention grants, raising the previous amount to a new total of $29 million. Property owners are also given some solace with the City’s Homestead Exemption being raised from $80,000 to $100,000, anticipated to save eligible homeowners a substantial $1,400 on their property tax bills, amidst expected value assessments hikes next year.
Housing remains a key concern, evidenced by an additional $19 million in funding for rental assistance, cumulatively amounting to $34 million when combined with the Housing Trust Fund. Furthermore, an extra $5 million will be allocated to the Philadelphia Energy Authority’s Built to Last program, assisting in combating the repercussions of gentrification, and enabling residents to afford necessary home repairs. Gentrification, a growing issue across cities, manifests in Philadelphia as a threat to the cultural and economic texture, hence the necessity of such interventions is clear.
City Council also negotiated a vital $18 million in capital funding for upgrades to recreation centers and libraries, ensuring these communal spaces are inviting and well-equipped. Employee welfare is also tackled with a $7 million investment to expand paid parental leave for city employees. The cultural sector breathes a sigh of relief as the previous proposal to cut funding for Mural Arts Philadelphia is reversed, restoring the full $3.68 million allocation to support the city's vibrant public art scene.
These financial decisions bare the marks of an administration working to balance growth with support, crafting a fiscal plan that aims to enrich the lives of Philadelphians across diverse sectors while holding steady the line on taxes. The full details of the budget are available at Philadelphia City Council's official website.
