How to Read the City Budget

Reading the city budget starts with knowing which documents exist and what each answers. Philadelphia's budget covers city and county functions in one plan. In 2026, the Mayor presented a $6.97 billion fiscal year 2027 budget and five-year plan to Council on March 12, and Council approved the FY2027 operating and capital budgets on June 11, a total the Northeast Times reported as about $7 billion; the city's own adopted "Budget in Brief" is the authoritative source for exact totals. The process is explained in Philadelphia City Budget Process; this guide is the practical companion.^[1]

1 Step 1: Learn the calendar

The fiscal year runs July 1 to June 30. The Mayor submits a proposed budget and five-year plan to Council in March (the FY2027 proposal was presented on March 12, 2026). Council's committees hold department-by-department hearings in spring, where department heads testify. Council can amend the budget and must adopt it by June so the new year can start July 1. Council cannot generally add spending beyond projected revenues. Tax changes in the budget require separate Council bills; the FY2027 debate included proposals by the Mayor that Council did not adopt, per press reports. See Philadelphia City Council and Philadelphia Taxes.

2 Step 2: Know the documents

• Budget in Brief: a short summary of revenues, spending by department, and priorities; start here.
• Budget detail: department-level pages of spending by class (personal services, contracts, materials) and positions; Council also posts department detail from each hearing on phlcouncil.com.
• Five Year Plan: multi-year projections the state-created PICA reviews.
• Capital budget and program: the six-year plan for buildings, streets, and equipment financed largely by bonds.
• Controller reports: the City Controller issues budget reviews and the Annual Comprehensive Financial Report.
• Open data: spending and contract datasets; see Open Data and Transparency Tools.

Most are published by the Finance Department and its Budget Office on phila.gov.^[2]

3 Step 3: Follow revenue

The General Fund is the main operating fund. Its largest sources are tax revenues, especially the wage and earnings tax, real estate tax, business taxes and the sales tax; other sources are state and federal aid, and fees. Property tax revenue depends on assessed values set by the Office of Property Assessment and collected by the Revenue Department. Tax breaks, such as those in Tax Abatement and Development Incentives, reduce revenue and are described in tax-expenditure reports. Ask: is a revenue line one-time or recurring? Is it dependent on state or federal decisions?

4 Step 4: Follow spending

Spending is grouped by department and by object class. Look at three things: the size of the department, the share going to personnel (salaries and benefits, tied to union contracts), and how much goes to pensions and debt service, which are fixed costs; see Board of Pensions and Retirement. Public safety departments, such as the Police Department, Fire Department and Department of Prisons, together account for a very large share of General Fund personnel costs. Compare the proposed budget with the prior year's adopted budget and with year-end actuals, because departments often differ from their budgets. Labor settlements, such as the 2025 DC 33 strike outcome, shape later years.

5 Step 5: Capital budget and Five Year Plan

The capital budget funds long-lived projects, with items listed by department and funding source (city bonds, state, federal, private). The Five Year Plan shows whether projected balances turn negative in later years; PICA and rating agencies watch these. A small fund balance means less cushion against recessions or cuts in federal aid. The Finance Department manages bond issuance, and the City Treasurer handles cash.

6 Step 6: Get involved

• Read the Council hearing schedule and sign up to speak: How to Testify at City Council.
• Ask your district member which amendments are being considered: How to Find Your Elected Officials.
• Request budget details not published: How to Request Public Records.
• Follow contracts: Understanding City Contracts and Bids.
• Join budget-watch groups: Good Government Groups.

See also: Finance Department, Philadelphia City Budget Process, Glossary

References

1. City of Philadelphia, "FY2027 Budget in Brief" (as adopted by Council, June 2026), phila.gov.
2. City of Philadelphia, "FY27-31 Five Year Plan per Council Approved Budget," phila.gov (July 2026).
3. Philadelphia City Council, "Council approved the Fiscal Year 2027 operating and capital budgets on Thursday, June 11," phlcouncil.com.
4. Northeast Times, "City Council approves $7 billion budget while rejecting mayor's tax proposals," June 12, 2026.