Legislative Updates: A Weekly Roundup of Federal, State, and Local Actions – April 1

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, April 1, 2022.

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:

Inclusive Growth Coalition – Update

The Inclusive Growth Coalition is committed to maintaining steadfast throughout the FY’23 Budget process.

The Inclusive Growth Coalition (IGC) penned an Op-Ed for the Inquirer expressing the urgent need for citywide job and business growth.

Business growth and attraction are primary actions the city can take to fuel our economy – leading to more jobs, more business-to-business commerce, an increased tax base for healthcare, education, and public services, less poverty, and more overall dollars flowing throughout Philadelphia.

Job and business growth are key components to reducing violence, crime, and blight in Philadelphia. Our city can substantially improve its economic standing with initiatives and policies that will grow ALL businesses and jobs citywide.

Critical to this is real investment in private-sector job growth, including meaningful Wage and BIRT tax reform that will help grow and attract employers of all sizes.

Visit InclusiveGrowthPHL.org for more information.

City Council Stated Meeting

Mayor Kenney presented his FY 2023 budget proposal (see summary below), and the corresponding budget bills were introduced on behalf of the Kenney Administration.

Councilmember Kendra Brooks introduced an ordinance that would impose a tax on intangible personal property, also known as the “Philly Wealth Tax.” 

Councilmember Kenyatta Johnson was granted leave from City Council on Thursday, March 31, 2022. Testimony in Councilmember Johnson’s federal corruption trial began on Thursday, March 24, 2022, and is expected to last 3 – 4 weeks.

Councilmember Derek Green introduced an ordinance that would allow the city to offer incentives (i.e., signing bonuses) to aid in recruiting certain City employees, including police officers.

Upcoming City Council Hearings

City Council budget hearings are scheduled to begin on Wednesday, April 6, 2022.

On Friday, April 8, 2022, the City Council Committee on Streets and Services will hold a hearing on several parking, encroachment, and “streetery” bills.

On Monday, April 11, 2022, the City Council Committee on Licenses and Inspections will hold a hearing on bills related to licensing requirements for mechanical system contractors and fire suppression system workers, and demolition permits and notices.

Mayor Kenney’s Proposed FY 2023 Budget

On Thursday, March 31, 2022, Mayor Kenney gave his seventh (and second to last) annual budget address to City Council. The Mayor’s proposed $5.6 billion spending plan does not include any tax increases but assumes a 4.5 percent increase (or approximately $33 million) increase in property tax revenues resulting from planned property reassessments this spring. Unlike in previous budgets, the FY 2023 spending plan does not include small decreases in wage and business taxes, freezing those rates at FY 2022 levels. In addition, despite receiving $1.4 billion from the American Rescue Plan, the Mayor is only proposing to spend $335 million of that money in FY 2023.

The Mayor’s budget proposal also includes a $153 million fund balance, or 2.7 percent of budgeted revenues, and far less than the city’s 6 to 8 percent goal.

City Council hearings on the Mayor’s proposal are scheduled to begin on Wednesday, April 6, 2022. City Council must approve the FY 2023 budget no later than June 30, 2022.

The Chamber will host an in-person City Council Reception on April 28. Read the full weekly update to learn more and register.

The Chamber will host an in-person City Council Reception on April 28. Read the full weekly update to learn more and register.

Chambers, Businesses Meet with House Members about CNI

This week, the Chamber and members of Compete PA, a coalition of 160 businesses representing more than half the private sector employment in Pennsylvania, met with numerous state House members on the Finance and Appropriations Committees to advocate for a material reduction in the state’s corporate net income tax (CNI) in an effort to make Pennsylvania more competitive with other states.

Senate Committees Examine Economic Impact of RGGI

The state Senate Environmental Resource and Energy and the Community, Economic and Recreational Development committees held a hearing on Tuesday to discuss the economic impact of joining the Regional Greenhouse Gas Initiative (RGGI).

On Wednesday, March 30 the PA House voted to stop the Governor from joining the coalition without approval from the General Assembly. The Senate is expected to take up the measure next week.

Cannabis Ventures Addressed in Banking Committee

On Wednesday, the state Senate Banking and Insurance Committee voted unanimously in support of Senate Bill 1167, which specifies that banks and insurance companies would be free to do business with cannabis-related businesses. The bill would also bar state agencies from taking actions to punish or deter banks and insurance companies from doing business with growers and dispensaries.

PA House Extends COVID-19 Waived Regulations

This week, the PA House voted to extend the hundreds of regulations waived and suspended during the COVID-19 pandemic through the end of June.

The Pennsylvania Senate will reconvene on Monday, April 4.

The Pennsylvania House will reconvene on Monday, April 11.

The Chamber will host a virtual State Advocacy Update with Senator Wayne Langerholc, Jr. Thursday, April 14. Read the full weekly update to learn more and register.

White House Releases FY2023 Budget Request

This week, the President released his FY2023 Budget Request, which details a $5.8 trillion spending plan, a largely symbolic proposal that articulates the Administration’s priorities before Congress begins in earnest the FY2023 appropriations process to pass a spending bill before the start of the federal fiscal year on October 1, 2022. The President’s budget proposal includes increases in defense spending, deficit reduction, and a strong emphasis on climate change, public safety and law enforcement, manufacturing initiatives, and affordable housing.

The proposal calls for tax increases on pass-through businesses and corporations by calling for an increase in the top individual income tax rate to 39.6 percent from 37 percent as well as an increase in the corporate tax rate to 28 percent from 21 percent. The Chamber has consistently opposed these tax increases on employers. The proposal would also create a new minimum tax on households worth more than $100 million. A 20 percent tax on their income, as well as unrealized gains in the value of their liquid assets, would enable the government to collect an additional $360 billion in tax revenue by taxing not just income but also wealth.

FY2023 Appropriations Process Begins

Congress retains the “power of the purse,” the ability to tax and spend public money for the federal government. House and Senate offices have begun their process to submit appropriations requests that will be considered in the drafting of the twelve appropriations bills that must be passed before October 1, 2022. The House Appropriations Committee released guidance for appropriations requests and “Community Project Funding” requests, also known as earmarks.

COVID-19 Relief Bill

Senate Democrats and Republicans continued their negotiations for additional relief this week. Republicans are reportedly unconvinced that previously authorized funding has been depleted and have called on the Administration to consider available dollars before considering new funding mechanisms. The currently negotiated funding has also been reduced from $22 billion to $10 billion.

Odds and Ends

This week the Senate passed a bill that amends the House-passed America COMPETES Act by attaching the Senate-passed United States Innovation and Competition Act to the bill. The move sends the bill back to the House which sets up the opportunity for both legislative chambers to formally go to conference to reconcile differences between the two bills.

The House passed by a nearly unanimous margin the Securing a Strong Retirement Act of 2022, legislation that would improve employee retirement savings opportunities, including automatic enrollment in retirement plans and small business credits among other provisions in the bill.

Mayor Kenney’s Proposed FY 2023 Budget

On Thursday, March 31, 2022, Mayor Kenney gave his seventh (and second to last) annual budget address to City Council.

The Mayor’s proposed $5.6 billion spending plan does not include any tax increases but assumes a 4.5 percent increase (or approximately $33 million) increase in property tax revenues, resulting from planned property reassessments this spring.

By and large, the Mayor’s proposal preserves the status quo (i.e., no significant changes in spending or programming).

Budget highlights include:

• $270 million for the School District of Philadelphia in FY 2023, bringing the total investment to more than $1.4 billion over the life of the Five-Year Plan;
• 300 new PHL PreK slots for a total of 4,300 free pre-school slots in high-quality early learning centers;
• 3 new Community Schools bringing the total to 20 Community Schools across Philadelphia;
• An additional $48 million over five years to the Free Library;
• An additional $12 million for Anti-Violence Community Partnership Grants;
• $6 million to expand evidence-based crisis intervention programs that specifically target individuals at risk of being a target or perpetrator of gun violence and provide connections to treatment services, employment, and behavioral health supports;
• Nearly $4 million for violence prevention programs and supports focused on delinquent youth, including restorative justice programs, homicide, and non-fatal shooting reviews, and two additional Community Evening Resource Centers;
• Funding for 60 miles of street paving and expanded street cleaning;
• $9 million in increased funding for SEPTA;
• $7 million for commercial corridor cleaning; and
• $27.9 million to the Housing Trust Fund in FY 2023 and $144.6 million over five (5) years for the construction of new affordable homes, the preservation and repair of existing homes, and homelessness prevention.

The Mayor’s budget proposal also includes a $153 million fund balance, or 2.7 percent of budgeted revenues, and far less than the City’s goal of the 6 to 8 percent.

The Mayor did indicate he will not be proposing any Wealth Tax.  Primarily because the State’s uniformity rules will not allow for it.

Further, eight months ago the Mayor and City Council jointly announced a Tax Reform Working Group charged with examining and proposing “changes to the city’s tax code to support an equitable recovery from the COVID-19 pandemic for every Philadelphia resident and business in the city.”

That action plan will also “inform and influence the creation of the FY2023 Budget and Five-Year Plan.”

As the Tax Reform Working Group has not yet issued their proposals, the Mayor’s budget does not currently include its anticipated recommendations.

We have been informed that the Mayor and Council are awaiting forthcoming results from property reassessments which have been on hold for the past two years, prior to making tax reform recommendations.

As this year’s budget is examined and debated, leaders in City Hall have expressed their commitment to improving job and business growth in Philadelphia.

We look forward to the Tax Reform Group’s recommendations and to an effective inclusive growth policy for the city.

City Council hearings on the Mayor’s proposal are scheduled to begin on Wednesday, April 6, 2022. As a reminder, City Council must approve the FY 20223 budget no later than June 30, 2022.

The Inclusive Growth Coalition is committed to maintaining steadfast throughout the FY’23 Budget process.

The IGC penned an Op-Ed for the Inquirer expressing the urgent need for citywide job and business growth.

The fact is business growth and attraction are primary actions the City can take to fuel our economy – leading to more jobs, more business-to-business commerce, an increased tax base for healthcare, education and public services, less poverty and more overall dollars flowing throughout Philadelphia.

Job and business growth are also key components to reducing violence, crime and blight in Philadelphia.  Our city can substantially improve its economic standing with initiatives and policies that will grow ALL businesses and jobs citywide.

Key to this is real investment in private sector job growth, including meaningful Wage and BIRT tax reform, that will help grow and attract employers of all sizes.

Go to InclusiveGrowthPHL.org for more information.

City Council Stated Meeting

• Councilmember Kenyatta Johnson was granted leave from City Council on Thursday, March 31, 2022. Testimony in Councilmember Johnson’s federal corruption trial began on Thursday, March 24, 2022, and is expected to last 3 – 4 weeks.
• Councilmember Derek Green introduced an ordinance that would allow the city to offer incentives (i.e., signing bonuses) to aid in the recruitment of certain City employees, including police officers. This legislation comes on the heels of calls from Councilmembers for increased police presence in neighborhoods and the Police Department’s documented staffing shortages.
• Councilmember Kendra Brooks introduced an ordinance that would impose a tax on intangible personal property, also known as the “Philly Wealth Tax.” The tax would be imposed on directly held stocks and bonds and is estimated to generate up to $280 million for the City’s General Fund. Upon introduction, Councilmember Brooks stated that the ultra-rich and the 1 percent have not paid their fair share in taxes and that black and brown communities are negatively impacted as a result. According to Brooks, the Philly Wealth Tax is our collective answer to the status quo that has failed communities like hers for decades. Revenue from the tax could “create a model for how public services can be sustainably funded.”

Upcoming City Council Hearings

• City Council budget hearings are scheduled to begin on Wednesday, April 6, 2022.
• On Friday, April 8, 2022, the City Council Committee on Streets and Services will hold a hearing on several parking, encroachment, and “streetery” bills.
• On Monday, April 11, 2022, the City Council Committee on Licenses and Inspections will hold a hearing on bills related to licensing requirements for mechanical system contractors and fire suppression system workers, and demolition permits and notices.

Odds and Ends

• Phillies Opening Day is Friday, April 8, 2022!
• The Education Nominating Panel, the entity responsible for submitting names of qualified candidates to the Mayor for selection for the Board of Education, will hold a public meeting on Monday, April 4, 2022 at 11:00 AM. This meeting will be held virtually, and members of the public may access this meeting by registering in advance.

Upcoming Local Advocacy Programs

• April 28 – [In-Person] City Council Reception

Questions? Contact William Carter (wcarter@chamberphl.com) for more information about local legislative affairs.

Chambers, Businesses Meet with House Members about CNI

This week, the Chamber and members of Compete PA, a coalition of 160 businesses representing more than half the private sector employment in Pennsylvania, met with numerous state House members on the Finance and Appropriations Committees to advocate for a materially reduction in the state’s corporate net income tax (CNI) in an effort to make Pennsylvania more competitive with other states.  

Reducing the CNI to at least 7.99 percent is the top priority of the Chamber, the Greater Pittsburgh Chamber of Commerce, and the Pennsylvania Chamber of Business and Industry. The Governor’s budget calls for a reduction in the CNI, but includes numerous add backs, which the business community does not support.

The Chamber will continue to advocate on this issue throughout the spring as part of the ongoing budget negotiations in Harrisburg. 

Senate Committees Examine Economic Impact of RGGI

The state Senate Environmental Resource and Energy and the Community, Economic and Recreational Development committees held a hearing on Tuesday to discuss the economic impact of joining the Regional Greenhouse Gas Initiative (RGGI).

In written testimony, Matt Knittel, director of the state’s Independent Fiscal Office, said that initial earlier projections from PA Department of Environmental Protection (DEP) said that entering RGGI would translate into monthly electric bill increases for residential customers of $1.65 that use electric for heating and $1.17 for homes that rely on other heating sources.

On Wednesday, the PA House voted to stop the Governor from joining the coalition without approval from the General Assembly. The Senate is expected to take up the measure next week.

Cannabis Ventures Addressed in Banking Committee

On Wednesday, the state Senate Banking and Insurance Committee voted unanimously in support of Senate Bill 1167, which specifies that banks and insurance companies would be free to do business with cannabis-related businesses. The bill would also bar state agencies from taking actions to punish or deter banks and insurance companies from doing business with growers and dispensaries.

Pennsylvania is one of 37 states with legal medical cannabis treating more than 600,000 Pennsylvania patients.

The U.S. House is set to vote Friday on the Marijuana Opportunity Reinvestment and Expungement (MORE) Act, which would reclassify marijuana and remove criminal penalties related to possessing or distributing cannabis products. However, the legislation’s future in the U.S. Senate is uncertain, particularly since Senate Democratic Leader Chuck Schumer is reportedly working on his own marijuana legalization bill.

PA House Extends COVID-19 Waived Regulations

This week, the PA House voted to extend the hundreds of regulations waived and suspended during the COVID-19 pandemic through the end of June.

The Pennsylvania Senate will reconvene on April 4^th.

The Pennsylvania House will reconvene on April 11^th.

Upcoming State Advocacy Program

• April 30 – [Virtual] State Advocacy Update with Senator Wayne Langerholc Jr. 

Questions? Contact Liz Ferry (lferry@chamberphl.com) for more information about state legislative affairs.

White House Releases FY2023 Budget Request

This week, the President released his FY2023 Budget Request which details a $5.8 trillion spending plan, a largely symbolic proposal that articulates the Administration’s priorities before Congress begins in earnest the FY2023 appropriations process to pass a spending bill before the start of the federal fiscal year on October 1, 2022. The President’s budget proposal includes increases in defense spending, deficit reduction, and a strong emphasis on climate change, public safety and law enforcement, manufacturing initiatives, and affordable housing.

The proposal calls for tax increases on pass-through businesses and corporations by calling for an increase in the top individual income tax rate to 39.6 percent from 37 percent as well as an increase in the corporate tax rate to 28 percent from 21 percent. The Chamber has consistently opposed these tax increases on employers. The proposal would also create a new minimum tax on households worth more than $100 million.  A 20 percent tax on their income as well as unrealized gains in the value of their liquid assets would be enable the government to collect an additional $360 billion in tax revenue by taxing not just income but also wealth.

FY2023 Appropriations Process Begins

Congress retains the “power of the purse,” the ability to tax and spend public money for the federal government.  House and Senate offices have begun their process to submit appropriations requests that will be considered in the drafting of the twelve appropriations bills that needs to passed before October 1. The House Appropriations Committee released guidance for appropriations requests and “Community Project Funding” requests, also known as earmarks.

The House has also released guidelines for the FY2023 Community Project Funding request process. Appropriators will consider language or programmatic general funding requests and up to 15 Community Project Funding requests (up from 10 requests last year) across all Subcommittees.  Congressional Members will be required to prioritize their community project requests when they are submitted to the Member database. Community-wide support will be crucial in determining which projects receive an earmark. Funding is available to local and state government as well as non-profits. Please consider our Chamber if you would like a letter of support for a particular Community Project Funding request.

House members can submit various FY2023 appropriations and earmark requests beginning, Monday, April 4, 2022 with key deadlines for the Appropriations Subcommittees as follows:

April 27:

• Financial Services and General Government
• Labor, Health and Human Services, Education, and Related Agencies
• Legislative Branch
• State, Foreign Operations, and Related Programs

April 28:

• Agriculture, Rural Development, Food and Drug Administration, and Related Agencies
• Defense
• Homeland Security
• Military Construction, Veterans Affairs, and Related Agencies

April 29:

• Commerce, Justice, Science, and Related Agencies
• Energy and Water Development, and Related Agencies
• Interior, Environment, and Related Agencies
• Transportation, and Housing and Urban Development, and Related Agencies

The Senate Appropriations Committee has also released guidance on how appropriators will accept appropriations requests from Senate offices. Deadlines for these requests are not until May.

COVID-19 Relief Bill

When it was thought that it could pass as part of the FY2022 omnibus appropriations package, a $22 billion spending supplemental for coronavirus counter measures, including vaccine and testing distribution and preparedness, was stripped from the bill because it would have been offset with dollars previously allocated to states.  Democrats and Governors were opposed to the approach. The Administration is still warning of significant risk to the public health if previously authorized funding runs dry in the weeks ahead without congressional action. Congress has limited time to pass additional funding before Congress adjourns for a two-week recess at the end of next week.

Senate Democrats and Republicans continued their negotiations for additional relief this week. Republicans are reportedly unconvinced that previously authorized funding has been depleted and have called on the Administration to take account of available dollars before consideration of new funding mechanisms.  The amount of funding currently negotiated has also been reduced from $22 billion to $10 billion.

Odds and Ends

• This week the Senate passed a bill that amends the House-passed America COMPETES Act by attaching the Senate-passed United States Innovation and Competition Act to the bill. The move sends the bill back to the House which set ups the opportunity for both legislative chambers to formally go to conference to reconcile differences between the two bills.
• The House is positioned to vote today on the Marijuana Opportunity Reinvestment and Expungement Act, legislation to federally decriminalize marijuana usage, expunge convictions, and tax the sale of marijuana. If passed, the bill would move to the Senate for consideration.
• The House passed by a near unanimous margin the Securing a Strong Retirement Act of 2022, legislation that would improve retirement savings opportunities for employees including automatic enrollment in retirement plans and small business credits among other provisions in the bill.

Questions? Contact Anselm Sauter (asauter@chamberphl.com) for more information about federal legislative affairs.

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: 

• Anselm Sauter, Federal Affairs – asauter@chamberphl.com 
• Liz Ferry, State Affairs – lferry@chamberphl.com 
• William Carter, Local Affairs – wcarter@chamberphl.com 

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: