Mayor Cherelle Parker proposed a $1 per ride tax for rideshares to help close the School District of Philadelphia’s $300 million budget gap. Parker made the announcement during a press conference on Monday, March 23, 2026, at the Delaplaine McDaniel School on 1801 South 22nd Street. Philadelph ia School District Superintendent Dr. Tony Watlington and other officials also attended the event. The school district currently faces a $300 million budget gap. Officials have warned that without action, the budget gap could lead to the loss of hundreds of school-based positions. On March 12, Parker proposed a 20 cents per ride tax on rideshare rides in Philadelphia as part of her $6.9 billion city budget proposal for 2027. Under her initial plan, the tax would begin in July of 2027 and generate $9.6 million per year for the School District of Philadelphia. During her announcement on March 23, Parker amended her initial proposal. She said she was increasing the tax to $1 per ride. According to Parker, the increase would generate approximately $24 million for the school district in Fiscal Year 2027 and deliver $48 million in recurring funding starting in Fiscal Year 2028. “Today, we are putting forward a new, recurring revenue source for the School District of Philadelphia, generated right here in our city,” Parker said. “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.” Parker also said the additional funding would save approximately 240 positions within the school district, including 130 teachers, 55 student climate staff and 55 other school-based positions. The Parker administration also said a portion of the revenue would support “targeted economic mobility initiatives,” including free SEPTA passes for eligible school district employees. The proposal also includes a three-year pilot program through a partnership with the Philadelphia Parking Authority to help residents with unpaid parking tickets resolve license and registration suspensions. The program would allow them to receive grants to help pay off outstanding balances, have their late fees waived and restore their driving privileges. “These investments are about more than funding,” Parker said. “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.” If approved, the tax would take effect on Jan. 1, 2027, six months earlier than her initial plan. Parker also said the tax would be applied to rideshare companies, rather than individual drivers. Uber had already said in response to the 20 cents per ride tax proposal, however, that the cost would be passed along to riders. NBC10’s Lauren Mayk asked the mayor about the potential financial impact the rideshare tax could have on riders. “What makes you believe that Philadelphians can afford this?” Mayk asked Mayor Parker during her press conference. Parker began her answer describing Uber’s history in Philadelphia and its impact on the taxicab industry. She then reiterated her point that it would be up to the rideshare companies to decide how they would handle the tax. “Again, I’m not responsible for how the company decides that it wants to adjust to this $1 tax. It’s not my responsibility to decide what it does,” she said. Ahead of Parker’s announcement, Jazmin Kay, an Uber spokesperson, sent a statement speaking out against the mayor’s proposal. “The 5x hike of the Mayor’s proposed rideshare tax will hurt drivers and hit everyday Philadelphians, making rides less affordable and threatening critical access to jobs, healthcare, and essential services,” Kay wrote. “This double tax worsens Philadelphia’s affordability and transportation crisis, even though rideshare already provides millions to city schools annually through existing taxes.” Parker said the rideshare tax would not impact the school district’s planned closures or long-term facilities decisions. In January, the district unveiled a $2.8 billion master plan that called for the closure of 20 district-owned properties. Officials said 12 of those properties would be repurposed for the school district’s use while the remaining eight would be conveyed to the city to be used for workforce housing or job creation. Beyond the closures, the district would modernize nearly 160 of their facilities while continuing to maintain 122 others, under the plan. In February, Dr. Watlington presented an amended version of the plan that called for the closure of 18 district-owned properties rather than 20. “The development of this plan was rooted in partnership and a commitment to community engagement including 47 public listening sessions, 35 data verification sessions with principals, two District-wide surveys that received over a total of 13,000 responses,” noted Watlington in a statement.  District officials have said that students at schools impacted by the changes in the proposal would be reassigned to other schools with comparable or better academic outcomes and comparable or better building conditions. To fund the plan, the district would “commit $1 billion of its own resources and seek an additional $1.8 billion in public and philanthropic funding to fully realize this vision,” through a two-year capital borrowing cycle, according to Watlington. Both the initial proposal and the most recent amended version drew criticism and protests from parents, community members and school district employees. For more details on the proposal, including information on which schools are set for closure, check out the School District of Philadelphia’s website on the plan here. To submit feedback on the plan anonymously, click here for the district’s Community Comment Box. Philly school budget crisis Philadelphia Mar 12 Community shares opinions on closing Philadelphia schools at Thursday town hall Philadelphia Mar 12 Philadelphia mayor unveils $6.9B city budget proposal for 2027 ...read more read less