Mayor Cherelle Parker unveils ‘economic mobility agenda’ in $7B city budget proposal
Parker on Thursday proposed investments in workforce development, financial counseling, and internship opportunities for young people.
Since taking office, Mayor Cherelle L. Parker has treated her 2023 campaign slogan — to make Philadelphia the “safest, cleanest, and greenest big city in the nation with access the economic opportunity for all” — as a to-do list for her administration.
With the homicide rate down and high-profile efforts to improve public cleanliness underway, Parker on Thursday unveiled her third city budget proposal and framed the $7 billion plan as the fulfillment of the final part of her slogan.
“My focus sharpens on a goal that touches every family and every neighborhood, and that is economic mobility for all and self-sufficiency for all,” Parker said in her annual budget address to City Council. “What good is a safer, cleaner, and greener city if our people don’t have access to good-paying jobs, quality healthcare, and a real shot at raising a family, owning a home, and building a pathway to a better and more affordable life?”
Almost everything in the city budget can be cast an economic mobility initiative, from funding for education and housing to SEPTA subsidies. But in terms of new spending, the agenda Parker articulated Thursday is far less ambitious than the $2 billion Housing Opportunities Made Easy, or H.O.M.E., initiative that was the centerpiece of her budget proposal last year.
A budget summary the administration distributed this week identified about $52 million in new spending related to economic opportunity. Parker, however, said her administration is working to boost economic opportunities in everything it does.
“Prosperity must be shared and accessible, with every resident able to afford a home, gain a quality education, and get the skills training they need,” she said in her speech, which lasted more than two hours. “If we get this right — by making value-driven, data-informed investments — Philadelphia can become the national model for economic mobility."
About 20% of Philadelphians live below the federal poverty line, which is $33,000 for a family of four. Among the 10 largest U.S. cities, only Houston has a higher rate.
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Parker frequently refers to research by Harvard University economist Raj Chetty, who measures economic mobility in large metro areas and found that the Philadelphia region ranked dead last.
“This budget charts the course from early childhood to school age, from graduation to career, all the way to retirement,” Parker said. “My economic mobility plan is designed so there is a pathway for everyone at every stage in life to move up that ladder.”
Parker’s speech officially kicked off “budget season” in City Hall. Next, Council will hold hearings on each major department’s spending plans. Then, Council President Kenyatta Johnson will negotiate with Parker’s team over amendments to the plan.
Lawmakers are expected to approve the final version in early June. The next budget takes effect July 1.
What’s in Parker’s ‘economic mobility agenda’
The administration labeled numerous line items in the budget proposal as part of her mobility agenda. They include spending $500,000 to create an Economic Mobility Cabinet and allocating $13.9 million in new funding for the Office of Community Empowerment and Opportunity to connect residents with financial counseling, low-cost banking services, and other opportunities.
The agenda also calls for spending $10 million in workforce development training; $7 million to boost help graduates of the Community College of Municipal Employment, a program Parker previously launched to create a pipeline to city jobs; and $14.7 million to add 1,000 slots to the city’s Career Connected Learning programs, which provides young Philadelphians with internships, career mentorship, or job shadowing opportunities.
The administration has also requested feedback from companies interested in working on Parker’s goal of building modular housing manufacturing facilities in Philadelphia, a vision she hopes will provide both employment opportunities and make housing more affordable. The budget proposal sets aside $10 million as a “placeholder” for that initiative, which is in its early stages, Finance Director Rob Dubow said.
Some of the investments the Parker administration pitched as part of the agenda do not appear to have as clear a connection to economic mobility, such as $2.5 million over five years for the Dell Music Center and $350,000 “to support the relocation of the Rocky and Joe Frazier statues.”
More broadly, Parker also said Philadelphia’s economy, which has for decades relied on the region’s high-profile educational and medical institutions as the backbone of its economy, needs to evolve. She said the city will seek to embrace opportunities such as a $5 billion investment planned by the Korean company that owns the Hanwha Philly Shipyard.
“We can no longer just limit ourselves and say that Philadelphia is simply a city of eds and meds and leave out the economic potential of maritime, ship-building, and defense industries because they can and should be essential parts of our efforts to have economic mobility right here,” she said.
This is a developing story and will be updated.