Mayor Parker proposes $1 rideshare tax to protect Philadelphia public school progress

The proposal creates a new recurring local funding source delivering more than $40 million annually to stabilize schools
PHILADELPHIA - Mayor Cherelle L. Parker today announced that her Administration will propose an amendment to her Fiscal Year 2027 tax plan to increase the city's rideshare tax to $1 per trip, stepping up alongside the School District of Philadelphia and a broad coalition to protect student progress and prevent deep cuts in schools.

If approved, the increase would take effect on January 1, 2027.

The School District is currently facing a $300 million structural deficit following the expiration of federal COVID relief funds. Despite measurable gains under the District's Accelerate Philly plan, including higher attendance, improved test scores, rising graduation rates, and fewer dropouts, those gains are now at risk.

Without additional funding, the district planned to eliminate approximately 340 school-based staff, impacting teachers, counselors, and climate staff who are central to student success.
Mayor Parker's proposed amendment changes that trajectory.

"Today, we are putting forward a new, recurring revenue source for the School District of Philadelphia, generated right here in our city," said Mayor Cherelle L. Parker. "We have made real progress in our schools, and I am not going to allow us to lose ground. This is about protecting that progress and making sure every child in Philadelphia has a real shot."

The amendment increases the rideshare tax from the originally proposed 20 cents per trip to $1 per trip. The tax is applied to rideshare companies, not individual drivers, and is consistent with similar approaches in peer cities, including New York City, Chicago, and Washington, D.C.

If approved, the city will begin collecting the increased tax on January 1, 2027, generating approximately $24 million in Fiscal Year 2027. Beginning in Fiscal Year 2028, the full annual impact will deliver $48 million in recurring funding.

With this additional funding and extraordinary effort by the district to find further efficiencies, the district will be able to restore approximately 240 positions. This includes approximately 130 teachers, 55 student climate staff, and 55 other school-based positions.

A portion of the revenue will also support targeted economic mobility initiatives, including free SEPTA passes for eligible essential School District employees.

The proposal also includes a three-year pilot program, in partnership with the Philadelphia Parking Authority, to help eligible residents resolve license and registration suspensions caused by unpaid parking tickets. Through this program, residents could receive grants to pay down outstanding balances, have late fees waived, restore their driving privileges, and reconnect to work and opportunity. Revenue generated from resolved tickets may ultimately support the School District.

"These investments are about more than funding," said Mayor Parker. "They are about economic mobility. From free transit for essential school workers to helping residents restore their licenses and get back to work, we are connecting people to opportunity. This is how we build a stronger Philadelphia, by making sure access to education and access to opportunity go hand in hand."

"Since launching Accelerate Philly, we have made real progress in our schools, from higher attendance to improved outcomes for students," said Dr. Tony B. Watlington, Sr., Superintendent. "We have also been strong stewards of our finances, earning the highest credit rating in the district's history. But we are facing a structural deficit that requires difficult decisions. We are grateful for Mayor Parker's leadership. This proposal helps us protect that progress and keep more educators and school-based staff in place, so our students continue to receive the support they need to succeed."

"We are grateful that the Board and District's call for increased resources is being heard and answered by our Mayor and the City. These investments, if passed, stand to be the largest increase in reoccurring funds the district has received from our local share in over a decade, said Reginald Streater, President of the Board of Education. We know that when resources are aligned with strategic actions to educate our children, they will learn-and we have the data to prove it. That said, we know our students deserve more than the status quo. Until we reach true adequate funding from our state, these investments risk serving as temporary measures-leaving the Board to confront difficult and, at times, painful decisions."

"Avoiding deep cuts to the School District requires an all-hands-on-deck approach," said Donna Cooper, Executive Director of Children First. "Mayor Parker's proposal to add $48 million in recurring funding responds directly to that need. Our city is showing it is ready to take meaningful action so every student can receive the quality education they deserve."

"Any cutbacks to staffing that directly impact student learning would undo the painstaking progress our members and administrators have made in the School District of Philadelphia. The Philadelphia Federation of Teachers commends Mayor Parker for recognizing the severity of the District's structural deficit, and for taking swift action for our students." said Philadelphia Association of Teachers President Arthur G. Steinberg. "Amid a painful citywide dialogue about the future of Philly public schools, successfully managing growth - not decline - must be our goal. Our students deserve nothing less. Mayor Parker's decision to more than triple down on her rideshare proposal to increase funding for public education signals a commitment to what we've long fought for: an affirmative vision for public schools in Philly in which every child has access to opportunity in a supportive, healthy learning environment."

"Philadelphia's students cannot afford instability in their schools. Every day, our principals and school leaders are working to sustain learning environments that depend on consistent staffing and support," said Dr. Robin P. Cooper, President, Teamsters Local 502 CASA. "We commend Mayor Parker for advancing a dedicated funding solution, and we support strengthening it to protect the staffing and support students rely on, because the village our children need is built every day inside our schools. When public schools are fully staffed and supported, students succeed.

"Philadelphia is facing a real risk of going backwards," said Dan Urevick-Ackelsberg, Senior Attorney at the Public Interest Law Center. "Students who already lack constitutionally sufficient staff, programs, and facilities could see even fewer resources in their schools. Mayor Parker has sounded the alarm. Now state and local leaders must answer the call."

This investment will be felt across nearly all schools, helping stabilize operations, reduce disruption, and preserve the supports that contribute to safer, stronger learning environments.

The funding does not impact planned school closures or long-term facilities decisions. The district will continue to address its facilities master plan separately, alongside ongoing efforts to secure additional support from Harrisburg. They will also continue to evaluate central office efficiencies, including freezing vacancies, reducing administrative costs, and cutting low-return programs.

Since taking office, the Parker Administration has committed nearly $250 million in new funding to Philadelphia schools over five years through adjustments to the property tax millage rate and other revenue measures. This proposal builds on that commitment and reflects a continued focus on stability, continuity, and long-term student success.

"We have come too far to lose ground now," Mayor Parker said. "This is about protecting our classrooms, supporting our students, and continuing the progress Philadelphia families are counting on."