Philadelphia creates Transportation Fund to cover operating, capital costs for city transit

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The city of Philadelphia recently split the General Fund to create a new Transportation Fund, Mayor Jim Kennedy announced on Thursday during his presentation to City Council on the Fiscal Year 2024 budget.

The split does not require additional staff or operations changes.

The Transportation Fund will be approximately $110 million and financed through the parking tax and non-tax and revenue from other government receipts associated with transportation activities. This will result in a minimal reduction in the General Fund balance for fiscal years 2024 through 2028.

The Transportation Fund will include the operating and capital costs for public safety enforcement officers, traffic safety improvements, engineering, paving, traffic signals, street lighting, right-of-way management, school crossing guards, and surveys.

Transportation needs such as increasing costs for paving and ADA curb ramps have put pressure on the General Fund and Capital budget. By creating the Transportation Fund, the city will be able to create dedicated revenue streams for transportation and allow new local and regional revenue streams for transportation to be easily allocated for transportation.

Kenney announced exciting investments in paving and transportation efforts during his presentation. The presentation also included the operating budget, capital program, and Five Year Plan proposal.