Mayor Parker says tax reform and affordable housing are priorities in 2025

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Philadelphia Mayor Cherelle Parker shared some insight into her priorities for the second year of her term during an annual luncheon hosted by the Chamber of Commerce for Greater Philadelphia on Wednesday.

Parker plans to introduce tax reform, revitalize Market East and invest in an affordable-housing strategy this year. However, she declined to share whether that will mean cutting business taxes, something a coalition of business chambers have lobbied for each year.

Instead, Parker emphasized her focus on expanding the local economy, which would collect more taxes overall. And that takes handling basic quality-of-life issues.

“You can’t grow the economic pie without making sure Philadelphia is safe, clean and green,” she said. “You have to take care of those basics first because no companies want to do business in a city they didn’t think was safe for their employees. I still believe that. Tax reform is part of that conversation.”

In the coming weeks, the Tax Reform Commission — which includes business leaders — is expected to share recommendations for the mayor’s budget this year, such as cutting city wage and business taxes.

“I also know everyone cares about tax reform. We hear you. We all want a Philadelphia that is economically competitive, and for our business community to feel their city is working with them, not against them,” she said during the luncheon speech.

Next week, Parker expects to sign an executive order that would create a housing advisory group to provide suggestions about how to improve affordability. In addition, a legislative package that encourages new housing development and increases density has already been introduced.

Last week, the city announced the Small Business Catalyst Fund of $5 million to promote economic development.

Philadelphia entrepreneurs can apply for grants up to $50,000 each, in addition to education, mentorship and strategy help.

Eligible small businesses must generate less than $2 million in revenue, have high growth expansion plans and contribute to the local economy. Applications are expected to open in May.

Over the past year, the Philadelphia Department of Commerce, led by director Alba Martinez, has worked to streamline the way it connects with local businesses. The city now has business navigators who have worked with nearly 300 companies and an average case resolution time of two days.

“That’s what I call moving at the speed of business,” Parker said.

The mayor’s business roundtables have been meeting for months, and leaders have recommended more than two dozen business-friendly policy recommendations so far.

In 2024, the city cleaned 63,000 blocks and commercial corridors, cleared 17,311 vacant lots and towed 4,717 abandoned cars. The city is also piloting twice-weekly trash pickup in select neighborhoods.

Parker noted her efforts to create a city college for municipal employment through a partnership with the Philadelphia School District and the Community College of Philadelphia.

On the state level, funding for SEPTA is a top priority, as is raising the state minimum wage to $15 an hour, she said.

As for affordable housing, Parker promised to either create, repair or restore 30,000 units during her administration’s tenure.

Parker also touted plans for the South Philly Sports Complex, where the 76ers and Comcast will work together on a new arena.

The redevelopment of Market East is up next, with Jerry Sweeney, CEO of Brandywine Trust, leading the mayor’s advisory efforts. Market East is also a longstanding project of Center City District founder Paul Levy.

Parker noted in a press conference after the speech that she wants to be mindful about that redevelopment effort.

“We are not going to try and rush. We are going to make sure that you’re going to see something established very soon in terms of organizational structure,” she said.

On the public safety front, Parker lauded the opening of the 336-bed Riverview Wellness Village in Northeast Philadelphia, in addition to a city-run wellness court system. The alternative court processes individuals arrested for minor offenses in Kensington, who will be offered drug addiction treatment instead of facing criminal charges.

Parker touted a decline in violent crime as homicides are down 37% compared to last year, while shootings are down 36%. Officials say they were able to reduce crime by focusing on a community policing model; there are 200 such police officers citywide in that role.

“Change is in the wind,” she said. “We want Philadelphia to be economically competitive. We want the creation of good jobs … that pay a living wage, health care and [have] retirement security. And yes, tax reform has to be part of that solution but it has to be a comprehensive solution.”

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