Description
School District of Philadelphia – Funding Sources
The School District of Philadelphia (SDP) relies on several revenue sources to fund its annual operations, which currently stands at $4.6 billion for the 2026-27 school year. Over the years, the funding mix has shifted, with most revenues derived from state and local sources and only modest dependence on federal support. Revenues from the state provide the most funding, accounting for more than $2 billion to support operations. The other primary single funding sources consist of approximately $1.15 billion from the city’s Real Estate Tax, nearly $285 million from the city’s General Fund, and about $200 million generated through the city’s Business Use and Occupancy tax. In FY2025, the city increased the SDP’s share of Real Estate Tax revenues from 55% to 56%, a change projected to generate approximately $240 million in additional revenue over five years.
The remaining funding sources are derived from local tax and non-tax revenues. In FY2025, the latest year with completed revenue totals, the SDP received $350 million from local taxes imposed on various goods and transactions, including $120 million from the Sales Tax, about $92 million from the Liquor by the Drink Tax, about $58 million from the Cigarette Tax, and almost $72 million from the School Income Tax. Revenues received from Ridesharing services and Public Utilities combined for less than $8 million.
Non-tax revenues totaled almost $55 million in FY2025. Revenues earned from SDP’s investments generated $28 million followed by about $10 million in miscellaneous category funds, $9.5 million from gaming, $4 million from voluntary contributions, and almost $3 million from stadium agreements. Although the SDP allocated $7 million from the Philadelphia Parking Authority in FY2025, no revenue was ultimately received from this source.
In addition, a comparison of how local, state and federal funding supports the SDP can be reviewed in the City Controller’s Municipal Money Matters for August 2025.