The People’s Budget: Shaping Philadelphia’s Future Together

What is the City Budget? 

The city budget is an annual plan showing how Philadelphia’s government expects to earn and spend money. It’s divided into two main parts:

1. Operating Budget
An annual budget that covers day-to-day services like trash collection, library programs, public art, and employee salaries.

2. Capital Budget
A multi-year budget that funds long-term investments in infrastructure, such as recreation centers, roads, city vehicles, and technology.

Together, these budgets drive the services and infrastructure that shape our neighborhoods and quality of life.

How the Budget Is Built 

The budget process follows a structured timeline and involves multiple stakeholders. The budget follows a fiscal year (FY) timeline from July 1-June 30.

FALL

City Departments Submit Requests. Departments propose funding needs for services, programs, and infrastructure improvements.

Budget Office and City Planning Commission Review. These offices assess the requests and projected revenues to develop a balanced budget based on performance measures from departments.
An example would be measuring how well Sanitation does with on-time trash pick-up and what resources they need to meet their goals
The Budget Office also considers the Mayor’s priorities in crafting the proposed budget documents.

WINTER-SPRING

Mayor’s Proposal. The Mayor refines the budget and submits it to City Council in an annual budget address.

SPRING

City Council Negotiations. Council holds budget hearings with various departments, gathers additional input, and negotiates with the Mayor’s Office to finalize the budget by June 30.

Who Makes Decisions? 

Revenue 

The city’s revenue comes from various sources, primarily local taxes like the wage tax. Additional funding includes state and federal aid, fines, and fees.

Revenue Sources Breakdown:

• Wage tax: The largest contributor. Philadelphia relies heavily on the wage and net-profits tax which means that with high levels of unemployment, the city may lose significant amounts of revenue.
• Property tax: Supports schools and city services.
• State and federal aid: Covers specific programs and infrastructure.

Expenditures

The term “Expenditures” refers to the money the city spends to operate effectively. This includes spending on services, obligations like pensions and debt repayment, infrastructure investments, and discretionary programs shaped by priorities and community input.

Here’s how the funds are allocated:

• Fixed Costs: About 50% goes to essential obligations like pensions, debt repayment, and contributions to public schools.
• Discretionary Spending: The remaining funds support services like parks, libraries, and sanitation, shaped by mayoral priorities and community input.

Philadelphia’s budget process faces new and old challenges. Neighborhoods across the city haven’t gotten enough funding in the past because of systemic racism. Many houses, buildings, roads, and parks are old and need expensive repairs. Fixed costs, like pensions and paying back borrowed money (debt), take up a lot of the budget, leaving less money for new projects. On top of that, changes in the economy can affect how much money the city earns.

How You Can Get Involved 

Your participation is vital to shaping a People’s Budget that works for everyone. Here’s how you can make an impact:

1. Attend Workshops and Events Join the People’s Budget Office for hands-on learning and activities that make the budget process accessible and engaging. Stay tuned for a list of upcoming budget workshops

2. Share Your Vision Imagine what a fully funded city could look like. What would every school, park, and library need for all Philadelphians to thrive?

3. Testify at City Hall Sign up to speak at public budget hearings.
City Council has several days for the public to voice their opinion about the city budget. These dates are published after the Mayor’s budget address in March. You can also testify about the budget throughout the year. Email Budget.Hearings@phila.gov to register.

4. Write to Elected Officials Let your City Council representatives know what issues matter most to you and your community.

5. Collaborate with Advocacy Groups Partner with grassroots organizations working on issues like racial equity, public safety, and arts funding.

Take Action 

Visit us at LOVE Park, connect with us online, or join one of our workshops. Together, we can create a People’s Budget that reflects equity, opportunity, and care for all.

Follow us on social media:

Instagram: @peoplesbudget4philly

Contact the People’s Budget Office at info@pbo.org

Together, let’s reimagine the city budget—and our future.