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Mayor Cherelle Parker is proposing a $1 tax on rideshare services like Uber and Lyft in the city to generate money for the School District of Philadelphia, which is facing a $300 million budget deficit.
It’s a fivefold increase from her original proposal of a 20-cent per-trip tax. If approved, it would go into effect Jan. 1, 2027, and generate $24 million in fiscal year 2027, according to a press release. By 2028, $48 million in recurring funding would be generated.
“If we don’t do this, our students will lose teachers, school climate staff, principals, assistant principals and other key school staff,” Parker said during Monday’s announcement at Delaplaine McDaniel School in the city’s Point Breeze neighborhood.
Less than two weeks ago, the school district proposed $225 million in budget cuts to go into effect next school year. This would eliminate 220 building substitute positions and reassign 340 school-based roles. Parker said this would cause an increase in overall class sizes.
“If you look at the major difference between schools in the city of Philadelphia and you compare us to schools in the suburbs or on the Main Line, one of the first things you observe is smaller class sizes when you get to the suburbs and other wealthier communities,” Parker said. “That’s not a risk that we’re willing to take.”
Parker defended her plan by suggesting companies, not drivers, should shoulder the cost.
“Those companies, they can make a decision about whether or not they pass this cost onto those hardworking folks,” Parker said. “Guess what they can do? They can decide to pay the tax and not pass it on to their employees. How about that?”
Parker’s proposal is far from guaranteed. It still needs City Council approval and has already faced opposition from rideshare companies.