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Philadelphia City Councilmembers had been warning for months that Mayor Cherelle Parker’s proposed rideshare tax was dead on arrival. On Thursday, they put it to rest.
City Council gave initial approval to a $7.1 billion budget deal Thursday that leaves out the $1 tax on companies like Uber and Lyft that Parker said would have generated $48 million to stop staff cuts at Philly schools. Instead, councilmembers’ will draw a one-time infusion of $48 million from other budget sources for the school district. Members did approve Parker’s proposal for a use-and-occupancy tax on cell phone towers, which her administration says will send $2.4 million annually to the district.
That $50 million deal for fiscal year 2027 may be too little too late for a school district already in turmoil. The school board approved a district budget last week that included millions in cuts. Earlier last month, board members approved a plan to close 17 schools.
Several educators told Chalkbeat forced transfer decisions have already kicked off and the district’s hiring process for next school year has reportedly been thrown into chaos. And while that $50 million may save some staff positions, 220 building substitute positions will still be cut. Enrollment declines mean some schools are eliminating class offerings and losing school-based workers beyond what the rideshare tax would have supposedly covered.
School district spokespeople did not immediately respond to requests for comment.
Philadelphia Federation of Teachers’ President Arthur Steinberg said Thursday that Council’s deal may staunch some of the budgetary bleeding, but without a source of recurring revenue like the rideshare tax, the school district will continue to face financial challenges.
Failing to establish a source of recurring revenue for the district “will accelerate the exodus of teachers and exacerbate the shortage,” Steinberg said. “One-time fixes will not cut it.”
Councilmembers also approved a resolution Thursday calling for hearings to explore finding recurring revenue sources for the district in the future.
Meanwhile, public school advocates spent the week knocking on council members’ office doors, urging members to budget for more than $50 million citing the district’s $300 million deficit and urgent needs.
“A vote for less than $75 million means building substitutes are left behind and schools facing enrollment-based cuts get no relief,” Shanée Garner, executive director of the Lift Every Voice parent advocacy group, said in a statement. “It means the children and schools carrying the greatest burden today will continue carrying it tomorrow.”
Carly Sitrin is the bureau chief for Chalkbeat Philadelphia. Contact Carly at csitrin@chalkbeat.org.
