Mayor Parker Unveils $6.97 Billion ‘One Philly, One Future’ Fiscal Year 2027 Budget & Five-Year Plan Proposal

Proposed FY27 Budget includes $227 million in new operating investments and $281 million in capital investments to advance a safer, cleaner, greener Philadelphia with a renewed focus on access to economic opportunity for all

PHILADELPHIA - Today, Mayor Cherelle L. Parker delivered to Philadelphia City Council her proposed Fiscal Year 2027 Operating and Capital Budgets, the FY27-31 Proposed Five Year Plan FY27-31 Proposed Five-Year Plan, and the FY27-32 Recommended Capital Program, outlining targeted investments in the Administration's top priorities, including public safety, cleaning and greening, housing, economic opportunity, workforce investments, and neighborhood quality of life.

Mayor Parker's $6.97 billion Proposed FY27 Budget includes $227 million in new operating investments, along with $281 million in capital investments, in pursuit of that vision. The Proposed FY27-31 Five Year Plan includes $642 million in new operating investments over five years, while the Recommended FY27-32 Capital Program includes $1.5 billion over the six-year program period.

"Philadelphians deserve a budget that continues to move our city forward," said Mayor Cherelle L. Parker. "We are seeing real progress-crime is down, jobs are growing, and neighborhoods are getting cleaner-but the work is far from finished. This budget doubles down on the investments that strengthen public safety, expand housing opportunity, support working families, and ensure Philadelphia's future remains strong."

The proposal builds on the Administration's "One Philly 2.0" FY26 Budget, which advanced major investments in housing, fair and fiscally responsible labor agreements, tax relief for residents and businesses, the City's wellness ecosystem, and preparations for Philadelphia's historic 2026 special events.

Read the Mayor's full remarks here.

Key investments in the FY27 budget proposal include:

• $642 billion in operating investments through FY31, supporting core City services and Administration priorities.

• $1.5 billion in capital investments over six years to modernize infrastructure and strengthen neighborhoods.

• Continued investment in the H.O.M.E. Initiative, the Administration's effort to build or preserve 30,000 units of housing.

• Dedicated resources to support public safety, neighborhood cleaning, and quality-of-life improvements.

• Investments to strengthen the City workforce and ensure reliable delivery of services.

These investments build on the Administration's broader vision of creating a safer, cleaner, greener Philadelphia with access to economic opportunity for all, while maintaining responsible fiscal management.

Major initiatives in the Proposed FY27 Budget and FY27-31 Five Year Plan include:

• Increasing economic mobility and opportunity through strategic investments in workforce development, access to City employment, and financial empowerment for Philadelphians.

• Striving to end street homelessness through the creation of 1,000 new shelter beds with wraparound services and stronger connections to permanent supportive housing.

• Investing in the Administration's wellness ecosystem to ensure continuity of care for individuals contending with substance use disorder and mental health challenges.

• Continuing public safety gains through prevention, intervention, and enforcement strategies, anti-violence investments, and Vision Zero improvements.

• Expanding clean and green efforts through neighborhood cleaning, corridor revitalization, highway beautification, paving, ADA improvements, and environmental sustainability investments.

• Building on the H.O.M.E. Initiative and the City's historic housing investments to increase supply, preserve affordability, and improve access to quality housing.

• Supporting education and workforce development through expanded PreK and Extended Day, Extended Year programming, direct support for the School District, and pathways to careers.

• Reinforcing core government operations and the City workforce through investments in hiring, retention, procurement modernization, and labor stability.

Fiscal Health

Philadelphia's finances remain strong, though the City continues to plan carefully for rising economic and federal uncertainty. The City's pension fund has now surpassed a 67 percent funded level, and Philadelphia's higher credit ratings continue to reduce borrowing costs and strengthen the City's ability to invest in core services.

"The Proposed FY27 Budget and Five-Year Plan balance strategic investments with responsible financial stewardship," said Sabrina Maynard, Budget Director. "By maintaining reserves, planning for economic uncertainty, and aligning funding with the Administration's priorities, this Proposed Plan positions Philadelphia to sustain progress while protecting the City's long-term fiscal health."

The Administration continues to prioritize responsible financial management to ensure essential services can be sustained while making strategic investments in the city's future. Key indicators of the City's fiscal stability include:

• Financial reserves. The Plan reestablishes the City's Federal Funding Reserve at $91 million and grows the Budget Stabilization Reserve to $344 million by the end of FY28, ensuring total reserves remain within the City's internal target of at least 6-8 percent of revenues throughout the Plan.

• Responsible long-term financial planning. The Plan defers the drawdown of American Rescue Plan Act interest earnings to the out-years as an additional safeguard against economic uncertainty and potential federal policy changes.

• Strong financial foundation. Philadelphia maintains the highest combination of credit ratings in 40 years, reflecting continued fiscal discipline and long-term stability.

• Continued pension progress. The City's pension system remains on track to reach full funding by FY33, strengthening the City's long-term financial outlook.

Access to Economic Opportunity and Mobility for All

Expanding economic mobility for Philadelphians is a central focus of the Administration's vision for a safer, cleaner, greener city with opportunity for all. In its third year, the Administration's proposed budget places special emphasis on helping residents at every stage of life - from early childhood and education to workforce training, homeownership, financial empowerment, and retirement security.

This focus advances a coordinated strategy to help more Philadelphians access good-paying jobs, build financial security, and move toward long-term economic stability.

To guide this work, the FY27 Budget establishes Philadelphia's Economic GPS - Growth, Prosperity, and Security - a framework designed to align City programs and investments that support workforce development, financial empowerment, and pathways to family-sustaining careers.

The Proposed Plan includes $107 million in operating investments and $231 million in capital funding to strengthen economic mobility across Philadelphia.

Key investments and initiatives include:

• $10 million in FY27 for workforce development initiatives, including training partnerships that connect residents with family-sustaining careers.

• $15 million to expand Career Connected Learning, creating 1,000 additional youth job opportunities and strengthening pathways to employment.

• Investment in the City College for Municipal Employment (CCME), including a new CCME Fellows program that will help recent graduates transition into careers in City government.

• Creation of an Economic Mobility Cabinet, bringing together workforce development, community empowerment, and financial stability programs to better coordinate efforts across City government.

• Expanded financial empowerment initiatives, including support for the Financial Empowerment Centers, which provides financial counseling, low-cost banking access, and assistance claiming tax refunds and other benefits.

• Launch of a new Student Loan Borrower Support Program, helping Philadelphians navigate federal student loan programs and access loan forgiveness opportunities.

• A new Small and Local Business Initiative, designed to expand contracting opportunities and support small and neighborhood-based businesses working with the City.

• Procurement modernization efforts, making it easier for businesses to work with the City while ensuring vendors are paid more efficiently.

• Investments supporting access to reliable transit, including continued funding for the SEPTA Zero Fare program for low-income residents and the SEPTA Key Advantage program that provides transit access for City employees.

Together, these investments are designed to ensure that more Philadelphians can participate in the city's growing economy and build pathways to long-term financial stability.

Ending Street Homelessness

The Proposed FY27 Budget makes a major commitment to ending street homelessness by expanding shelter capacity and strengthening the supports needed to help people transition to stable housing.

In December 2025, Mayor Parker launched the One Philly Response to Ending Street Homelessness, committing the City to facilitate the creation of 1,000 additional shelter beds, expand outreach, and provide wraparound medical and behavioral health services for individuals living on the street.

Philadelphia has now identified the full capacity needed to meet this initial 1,000-bed goal, marking a major milestone in the Administration's strategy to bring more residents indoors and connect them with long-term support.

During this winter's prolonged cold weather and Code Blue activations, expanded shelter capacity helped provide nearly 2,500 overnight stays, demonstrating the lifesaving impact of the City's investments in higher-quality shelter and service systems.

The Proposed Plan includes $22 million in FY27 and $110 million over five years to expand and sustain these efforts, including additional shelter capacity, expanded hours at the Hub of Hope, and increased encampment resolution capacity.

To support these investments, the Administration proposes a two percent increase to the Hotel Tax, generating approximately $20 million annually to fund efforts aimed at ending street homelessness.

Together, these investments strengthen the City's ability to move people off the streets and into supportive services, housing pathways, and long-term stability.

The Wellness Ecosystem

The Administration continues to expand Philadelphia's wellness ecosystem, a coordinated strategy that integrates housing, medical care, recovery services, workforce development, and social support to help residents overcome substance use disorder, homelessness, and mental health challenges.

Over the past two years, the City has significantly expanded treatment and recovery capacity through new programs and facilities designed to stabilize residents and support long-term recovery.

At Riverview Wellness Village, the City's recovery-focused residential program, the facility is now operating at approximately 95 percent capacity, with more than 250 residents on site and over 400 individuals served since opening. The program has already delivered more than 2,000 clinical interventions, including substance use treatment and behavioral health services.

The City is also seeing strong results at Philly Home at Girard, which has maintained full capacity while serving residents experiencing homelessness and addiction, with more than 70 percent of residents participating in early recovery programming.

Building on this progress, the Proposed Five-Year Plan commits $211 million in funding to support the City's wellness ecosystem, including operations at Riverview Wellness Village, services at Philly Home at Girard, the Kensington Wellness Support Center, the Neighborhood Wellness Court, and related treatment and recovery programs.

The FY27-32 Recommended Capital Program also includes $30 million in additional funding to fully fund construction of two new Health Centers in Northeast Philadelphia, bringing total capital investment in those projects to $115 million.

Together, these investments strengthen the City's ability to provide integrated care and long-term recovery pathways for residents experiencing homelessness, addiction, and behavioral health challenges.

A Safer City

Public safety remains the Administration's top priority. Guided by the P.I.E. framework - Prevention, Intervention, and Enforcement - the City continues to make measurable progress in reducing violence and improving safety across Philadelphia's neighborhoods.

According to data available from the Philadelphia Police Department, Philadelphia recorded 222 homicides in 2025 - one of the lowest totals since the late 1960s. The city also saw a 23 percent drop in shooting incidents, a 17.5 percent decline in homicides, and a 6.4 percent decrease in property crime from 2024 to 2025.

Key public safety investments include:

• $25 million in FY27 for community-based anti-violence grants, supporting grassroots organizations working to prevent violence and support neighborhood safety.

• $26 million from FY27-31 for the Kensington Wellness Court, allowing the diversion program to operate five days a week and continue operations at the Kensington Wellness Center.

• Expanded neighborhood policing and quality-of-life enforcement, including the deployment of Quality-of-Life Assurance (QLA) officers in police districts across the city.

• Body-worn cameras for officers across patrol districts and specialized units, strengthening transparency and accountability.

• $5 million in FY27 and $30 million through FY32 for Vision Zero improvements, helping reduce traffic fatalities and make streets safer for pedestrians, cyclists, and drivers.

Together, these investments support a comprehensive public safety strategy that prioritizes prevention, strengthens community partnerships, and ensures every Philadelphian can feel safe in their neighborhood.

A Cleaner and Greener City

The Administration's clean and green agenda continues to deliver visible improvements across Philadelphia through a coordinated, interdepartmental approach focused on neighborhood quality of life, environmental sustainability, and streetscape improvements.

Since summer 2024, the One Philly, United City Citywide Cleaning Program has delivered nearly 300,000 services, including vacant lot cleaning, graffiti removal, pothole repair, and other neighborhood quality-of-life improvements. Over the same period, the citywide Litter Index score decreased 11 percent, reflecting measurable progress in improving neighborhood conditions across Philadelphia.

The Proposed Plan includes $35 million in new operating funding and $837 million in capital investments supporting cleaning, greening, and neighborhood infrastructure improvements across the city.

Key investments supporting cleaning and greening efforts include:

• $7.1 million to launch the "One Philly Pothole Squad," expanding crews and equipment to respond faster to pothole repairs and roadway defects across Philadelphia's six highway districts. The initiative and other roadway improvements will be supported by a proposed Retail Delivery Tax, which is expected to generate approximately $15 million annually.

• $400 million for roadway paving and ADA ramp improvements, helping residents move safely and efficiently through their neighborhoods.

• Continued enforcement through the One Philly Illegal Dumping Task Force, which has issued more than 100 violation notices, cleared dozens of enforcement cases, and secured $3.5 million in judgments against illegal dumpers.

• Continued investment in the Gateways to Philadelphia Initiative, which has planted nearly 100,000 bulbs, trees, and shrubs along major corridors, transforming expressways and entry points into welcoming "ribbons of gold" for residents and visitors entering the city.

• $179 million in capital funding for Parks and Recreation facilities, along with continued investments in neighborhood parks and public spaces.

• Improvements to Lemon Hill in Fairmount Park, where infrastructure and accessibility upgrades will support community use and prepare the area to host the region's FIFA Fan Festival during the 2026 World Cup.

Together, these investments strengthen the everyday infrastructure that residents rely on - cleaner blocks, safer streets, well-maintained parks, and welcoming public spaces - while preparing Philadelphia to welcome the world during its historic 2026 celebrations.

Housing

The H.O.M.E. Initiative remains one of the Administration's signature priorities. In June 2025, the Administration worked with City Council to pass legislation authorizing $800 million in borrowing for the Housing Opportunities Made Easy (H.O.M.E.) Initiative, the single largest housing investment in the City's history. The plan aims to build and preserve 30,000 housing units and expand access to safe, quality, affordable housing.

The Proposed Five-Year Plan includes two $400 million H.O.M.E. borrowings, part of a larger long-term commitment, along with $151 million in new housing investments, including Land Bank support, a proactive rental inspection program, and strategies to increase supply through modular housing production.

Upcoming H.O.M.E. Initiative supported programs include:

• One Philly Mortgage, offering 30-year fixed-rate loans with low down payments and no private mortgage insurance for first-time homebuyers.

• Curbside Appeal Program, supporting greening, street furniture, and block-level improvements.

• Façade Improvement Program, helping preserve neighborhood character and reduce blight.

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