Your Chamber advocacy team is working to share legislative updates and continue to advocate for your business in Washington, D.C., Harrisburg, and Philadelphia. We’ve created a round-up of recent activity including Key Takeaways for Your Business and a Detailed Legislative Update. This represents our best knowledge of the situation as of 9:00 a.m. on Friday, May 7, 2021.

Chamber members are invited to join weekly legislative update calls hosted by our Advocacy team to hear the latest on COVID-19 relief and recovery efforts at the federal, state, and local level as well as other legislative matters concerning our community.

To learn more about how our region is preparing for recovery, visit our Recharge & Recover PHL Information Hub:

Visit the Recharge & Recover PHL Information Hub

KEY TAKEAWAYS FOR YOUR BUSINESS

Local

  • The Kenney Administration estimates the City stands to lose $100 million per year due to a permanent shift to remote working for suburbanites during the COVID-19 pandemic.
  • Creating tax revenue for the City by attracting suburban workers back into the city and creating new jobs for city residents is key to closing this potential budget deficit.
  • Mayor Kenney has included a significant investment in job growth in his recently proposed budget which should help boost revenues.
  • The arguments against business and wage tax reduction from some City Council members are confusing as high taxes only hurt the types of small and medium neighborhood businesses the city needs to grow and support.
  • Help us to address these issues and advance our inclusive growth agenda through informal engagement with members of City Council as a Council Connector. Read the full report to learn how to get engaged.
  • At yesterday’s City Council session a bill was introduced to create a new class of covered PHL Airport employees to receive prevailing wage benefits.
  • City Council passed a bill this week adding required conditions and information for reporting adjustments to taxable income.
  • FY22 Budget Hearings will be held next week to address budgets for the Managing Director’s Office, Law, Chief Administrative Office, Philadelphia School District, Community College of Philadelphia, Fire Department, Police Department, Prisons Department and Planning and Development.
  • Confirmed COVID-19 cases in Philadelphia have exceeded 140,400 with 3,501 deaths.
  • Starting today, May 7, the City is scheduled to relax some Safer-at-Home restrictions including increased capacity for indoor dining, an increase in table sizes, and the reintroduction of indoor catered events at 25% occupancy.
  • In all of these situations, the Health Commissioner made a strong recommendation that anyone participating in these higher-risk and higher-density events should be vaccinated first.
  • The Chamber will host virtual events with the City’s Director of Finance (May 12) and the Department of Human Services (May 24). Read the full weekly update below to learn more and register.

State

  • The Wolf Administration issued a final rule for the regulatory plan that would make Pennsylvania part of the RGGI, a multi-state consortium committed to reducing power plant greenhouse gas emissions through carbon credits.
  • Labor unions and legislators from energy producing counties contend that joining the RGGI could hurt jobs and businesses in Pennsylvania. To be enacted, the rule must go through two state regulatory boards with veto power.
  • The House voted to send HB72 to the Senate, a bill that would require an enhanced review process for major regulations that impose a cost burden of $1 million or more per year on the state, municipalities, and the business community.
  • The House also voted for HB950, a bill that seeks to allow the General Assembly to initiate the repeal of any regulation currently in effect by concurrent resolution, with the House, Senate and Governor all needing to approve the resolution.
  • HB139 was approved in the House and would require government agencies to create more transparency, ease-of-use, and third-party oversight during the permitting process. Similar measures have been opposed by Governor Wolf.
  • Pennsylvania’s General Fund revenue continues to be better than expected with collections coming in at $28.2 million more than anticipated for April, keeping the state’s year-to-date collections 4.2% ahead of the estimate.

Federal

  • Members of U.S. House of Representatives last week submitted their respective Community Funding Project requests, commonly referred to as earmarks.
  • Each Member of Congress can submit up to 10 community project requests for their state or local governments or nonprofits in their districts, but only a fraction of their requests are funded each year.
  • Members of our congressional delegation have posted their earmark requests to their websites. Read the full update to access links to the lists of requests from our region.
  • Earlier this month, Senate Republicans took a largely symbolic and non-binding vote to reaffirm their ban on earmarks instead of joining Democrats and House Republicans to revive the practice. The Senate Appropriations Committee is expected to issue instructions for requesting earmarks this week.

DETAILED LEGISLATIVE UPDATE

Local: Updates from Philadelphia’s City Hall

Partnership to Build and Inclusive Recovery Update: $100 million.

$100 million per year.

That’s how much tax revenue the Kenney Administration estimates the City stands to lose due to a permanent shift to remote working for suburbanites during the COVID-19 pandemic. That $100 million annual reduction is on top of the refunds many suburban workers may be due for working from home over the last fifteen months.

That number — $100 million in lost tax revenue per year — is why it’s so important that Philadelphia focuses on both luring those suburban workers back into the city and creating new jobs for city residents.

Which is why it was good news that Mayor Jim Kenney included a significant investment in job growth in his recently proposed budget. A study of past tax cuts found that as many as 25,000 new jobs were created due to reduced levies.

That number — $100 million in lost tax revenue per year — is also why the arguments some Council members are making are so confusing.

Some have argued that commuters shouldn’t get their burden slightly reduced because they don’t live here. But if suburban workers don’t come back to work in the city, they won’t be paying any city wage tax. How is that better? Others have argued that there should be no business and wage tax reductions at all, despite the clear connection to Philadelphia’s low business and job creation rate. Higher taxes only hurts the types of small and medium neighborhood businesses the city needs to grow and support.

If Philadelphia does not expand the number of workers in the city, we are facing a minimum of a $100 million budget deficit. Creating tax revenue for the city is critical and the only way to do that is to bring people back into the city and create new jobs.

Become a Council Connector

If you haven’t already, please consider becoming a Council Connector. Council Connectors will help advance our inclusive growth agenda through informal engagement with members of City Council. Such interaction would include meetings, phone calls or emails to members of Council to discuss our shared priorities. These direct relationships with members of Council and other decision makers are critical to making progress on Philadelphia’s biggest challenges. To sign up to become a Council Connector please email William Carter at wcarter@chamberphl.com

Updates from City Council

Bills/Resolutions introduced:

City Council voted to pass the following bills:

  • Bill 210139 (Green)- Amending Chapter 19-500 of The Philadelphia Code, entitled “Taxes and Rents – General,” by adding required conditions and information for reporting adjustments to taxable income.

Upcoming City Council Hearings

  • Committee on Global Opportunities & Creative/Innovative Economy
    • Friday May 7, 2021 at 9:00 am
      Resolution 200339– Resolution authorizing the Committee on Global Opportunities and the Creative/Innovative Economy to hold public hearings on plans, procedures, and global best practices for restarting the economy in the wake of the novel coronavirus pandemic.
  • FY22 Budget Hearings
    • Monday May 10, 2021 at 9:30 am
      Managing Director’s Office, Law, Chief Administrative Office
    • Tuesday May 11, 2021 at 9:30 am
      Philadelphia School District, Community College of Philadelphia
    • Wednesday May 12, 2021 at 9:30 am
      Fire Department, Police Department, Prisons Department and Planning and Development

City Council hearings are held in a remote manner using Microsoft Teams. These remote hearings may be viewed on Xfinity  Channel 64, Fios Channel 40 or phlcouncil.com/watch.

View the status of pending bills and resolutions »

View upcoming confirmed City Council meeting dates and agendas »

View upcoming City Council budget hearings »

COVID-19 Case Data

The Philadelphia Department of Public Health announced 283 additional confirmed cases of COVID-19 novel coronavirus in Philadelphia. That brings the number of confirmed cases to 140,428. In addition, the Department of Public Health also announced 56 new probable cases from rapid antigen tests.

The Department of Public Health confirmed three additional fatalities in Philadelphia. This brings the number of residents who have succumbed to the virus in Philadelphia to 3,501. Of the 3,501 total deaths, 1,194 (34%) were long-term care facility residents.

The Department of Public Health reports 390 patients with COVID-19 are currently being treated in Philadelphia hospitals, with a total of 54 on ventilators.

City to Relax Some Safer-at-Home Restrictions Starting May 7

In response to the number of new COVID-19 cases beginning to fall in Philadelphian and the region, the Health Department announced a series of changes to the City’s Safer-at-Home restrictions. Beginning Friday, May 7, 2021, the following changes will go into effect, bringing Philadelphia into closer alignment with Pennsylvania:

  • For indoor dining
    • Capacity will be increased from 25%, or 50% if restaurants meet enhanced ventilation standards, to 50%, or 75% if restaurants meet enhanced ventilation standards.
    • Maximum table size will be increased from four to six, and there is no longer a requirement that everyone at the table be from the same household.
  • For outdoor dining
    • Maximum table size will be increased to 10, which is the state limit.
  • For indoor catered events
    • Important to remember that events like indoor weddings are the highest risk.
    • For the first time in more than a year, the City will allow indoor catered social events up to 25% occupancy of space with a cap of 75 persons total.
    • If case rates continue to fall, the City may increase that cap to 150 beginning May 21.
  • Other gatherings and events
    • Indoor gatherings and events will be able to increase their maximum capacity to 25% of normal capacity and outdoor gatherings and events will be able to increase maximum capacity to 50%.
  • In all of these situations, the Health Commissioner made a strong recommendation that anyone participating in these higher-risk and higher-density events should be vaccinated first.

Upcoming Events

[Virtual] City Hall Connectors: A Look at the City’s FY22 Budget and 5-Year Plan
Wednesday, May 12, 2021 | 1:30 pm – 2:30 pm

[Virtual] Doing Business with the City: Department of Human Services
Monday, May 24, 2021 | 2:00 pm – 3:00 pm

Sponsorship opportunities are available for our Advocacy programs to fit a variety of goals and budgets. Contact torio@chamberphl.com for more information.

State: Updates from Harrisburg

Wolf Administration Issues Greenhouse Gas Emissions Rule

On Tuesday, the Wolf Administration issued a final rule for the regulatory plan to begin imposing a price on greenhouse gas emissions from power plants. The plan would make Pennsylvania a part of a multi-state consortium committed to reducing carbon dioxide. The rule must go through two state regulatory boards with veto power.

Pennsylvania would become the first major fossil fuel state to adopt a carbon pricing policy and join the Regional Greenhouse Gas Initiative, called RGGI. Under RGGI, owners of power plants fueled by coal, oil or natural gas with a capacity of 25 megawatts or more must buy a credit for every ton of carbon dioxide they emit.

Labor unions and legislators from energy producing counties state that imposing a price on carbon would severely hurt jobs and businesses in Pennsylvania. Recently, state Senate Republicans threatened to block confirmation of the Governor’s appointments to the Pennsylvania Public Utility Commission, which regulates public utilities, but not power plants or pollution if the Administration did not agree to seek the Legislature’s approval first to join RGGI.

PA House Considers Permitting Changes

This week, the state House of Representatives discussed regulatory review and state permitting process changes proposed by Republicans.

The House voted 108-93 to send to the Senate a bill – House Bill 72 – that would require an enhanced review process for major regulations that impose a cost burden of $1 million or more per year on the state, municipalities, and the business community.

HB72 would require a cost impact of proposed regulations to be verified as part of the review process, and the General Assembly would have 30 calendar days or 10 legislative days, whichever is longer, to vote on the proposal. Should a vote not be made during that time frame, or if either chamber of the legislature should vote down the regulation, it would not be implemented.

The House also voted 109-92 for House Bill 950 which, like HB72, seeks to give the legislature more power with regard to the state’s existing regulations by allowing the General Assembly to initiate the repeal of any regulation currently in effect by concurrent resolution, with the House, Senate and Governor all needing to approve the resolution.

By a vote of 113-88, the House approved legislation – House Bill 139 – that would require government agencies to post information regarding the permits they grant on their website; create a tracking system for applicants to check the status of their permit; state the legal reasoning behind a rejection of an application and include a contact person assigned to answer questions; and establish a program, to be administered by a third-party professional contracted by the agency, to review permit decision delays and resolve issues causing these delays. Similar measures have been opposed by Governor Wolf.

General Fund Revenue Better than Expected

In April, Pennsylvania’s economy continued to produce above-estimate General Fund revenues in April, even with an expected shortfall in personal income tax revenue due to filing deadline delay.

Pennsylvania’s total General Fund revenue collections were $28.2 million more than anticipated for the month, keeping the state’s year-to-date collections $1.3 billion, or 4.2 percent, ahead of estimate.

Federal: Updates from Washington D.C.

House Earmark Requests Released

Completing the first step of the FY2022 appropriations process, Members of U.S. House of Representatives last week submitted their respective Community Funding Project requests, commonly referred to as earmarks. 1 percent of discretionary spending will be reserved for earmarks, which state or local governments and nonprofits are eligible to receive. Each Member of Congress can submit up to 10 community project requests, but only a fraction of their requests will secure funding. The Appropriations Committee will release a list of funded projects on the same day as the Subcommittee markup, or 24 hours before full committee consideration if there was no Subcommittee markup.

Members of our congressional delegation have posted their earmark requests to their website. Additional requests may be posted over the next two months after President Biden releases his detailed budget which is expected by the end of May. A full list of requests from congressional offices in the Greater Philadelphia region are provided below:

The Senate Appropriations Committee is expected to issue instructions for requesting earmarks this week. Subcommittee deadlines for requests will likely come in mid- to late- June. Earlier this month, Senate Republicans voted to reaffirm their ban on earmarks instead of joining Democrats and House Republicans to revive the practice. The vote was largely symbolic and nonbinding, meaning that Senators are still free to submit for an earmark. Several Republicans has said they plan to take advantage of earmarks. It’s possible that any designated dollars refused by any Senate Republicans will be reallocated among Democrats. Pennsylvania’s Senator, Pat Toomey, is not expected to take advantage of earmarks stating that he “will not participate in an inherently wasteful spending practice that is prone to serious abuse.”

WE’RE HERE FOR YOU, YOUR TEAM, AND YOUR BUSINESS

The constantly changing nature of this public health crisis requires continued engagement with public policy developments. We invite you to reach out to our advocacy team directly with your questions: 

Chamber members are invited to join weekly legislative update calls hosted by our Advocacy team to hear the latest on COVID-19 relief and recovery efforts at the federal, state, and local level as well as other legislative matters concerning our community.

To learn more about how our region is preparing for recovery, visit our Recharge & Recover PHL Information Hub:

Visit the Recharge & Recover PHL Information Hub