Mayor Cherelle L. Parker said Thursday that Philadelphia will have a “cash flow problem” if the federal government shutdown and state budget impasse aren’t resolved by Dec. 1.
“We have so many challenges that are facing the city of Philadelphia with limited funds in order to address them,” Parker said at an unrelated news conference. “We hope that we get some resolution as soon as possible at both the state and the federal levels, because if we don’t, Philadelphia will have a cash flow problem beginning [Dec. 1]. So I am staying laser-focused on that, and we are focused on what we have the ability to influence here in our city.”
Parker did not elaborate on the funding streams that could dry up if the partisan deadlocks persist in Harrisburg and Washington.
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Across all funds, Philadelphia received $2.2 billion in the 2024 fiscal year. The largest source of federal money — at $1.2 billion — was the Medicaid-funded HealthChoices program, which provides mental health and substance abuse treatment for low-income residents.
Parker also noted that, due to the hold-up of state funding, the school district already “had to go and get a loan so that it can function on a daily basis.” The district last month approved a measure to borrow up to $1.5 billion to pay its bills through December while lawmakers remain at a stalemate over the state budget, delaying payments to schools and counties.
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Parker added that the city is prepared to handle a crisis, pointing to how it responded when a medical plane crashed in January, killing eight people.
“For Philadelphians who may be saying to themselves, ‘Well, we should be prepared for a crisis,’ I am proud to affirm that, not by what we say, but you saw Philadelphia respond to a crisis,” she said. “It was the worst black swan event that I had ever seen in our city, and one that no one could have ever controlled for. … We managed to keep it moving, and we were not working in silos, and that is the strategy we will continue to employ.”
The mayor was also asked about the potential of President Donald Trump sending the National Guard to the city. Trump has not threatened Philadelphia specifically, but has said he may send troops into additional cities with high crime rates.
As she has done since Trump took office in January, Parker avoided naming the president, and said her focus is on protecting Philadelphians.
“I will not allow my pride, ego, emotions, or politics of any kind to interfere in my commitment to make the public health and safety of all Philadelphians my No. 1 priority,” she said.